Have you heard about the concerning trend known as “revenge spending?”

It can happen to anyone, but it’s especially common among retirees. This group is in a position where they should be enjoying life — but the past few years have made it tough.

As pointed out by The Washington Post, this phenomenon has caught on in the post-COVID era. Those who saved for years were forced to cut back even more. Now many people are rebounding hard in the other direction — and the result could be serious struggles in retirement.

The Psychology (and Consequences) Behind Revenge Spending

Spending our hard-earned money is one of life’s pleasures. It’s like sitting down at the dinner table to our favorite treat. But when we pass on our cravings for too long, the urge to splurge can grow, like someone who abstains from the food they love in favor of a healthy diet, without approaching the change through moderation. They often end up relapsing into their old ways hard, at the expense of their health.

The same thing is true with finances. Those who have cut back during the pandemic and lockdown eras missed out on buying the things they love. Once they were able to spend money again, some went overboard.

Retirees especially are susceptible to this trend. They’ve fairly earned their right to enjoy life, so it’s easy to be extravagant given how these pleasures were withheld in the past few years.

What’s the solution? As mentioned, moderation. Setting up healthy financial limits based on your income and expenses, as well as the state of the economy, will keep you balanced. This approach is also handy when saving for retirement, and is even gaining ground over traditional options.

You Deserve to Enjoy Retirement, and We Fight for This Cause

Here at NORA, we believe every senior deserves the Social Security benefits they’ve earned to be fairly adjusted for inflation. To learn about our cause, check out our petition and sign it here – then follow us on Facebook and Twitter for more content like this.