One of the biggest surprises I see when working with retirees is this: most people spend much more in retirement than ever expected
It is not because they're careless. It's not because they're living beyond their means. It's because retirement spending is simply harder to estimate than most of us realize
We often picture retirement as a time when expenses will go down— no more commuting, work clothes, or expensive lunches. But in reality, many costs shift, not disappear, Travel picks up, home projects get tackled, family support may increase, and health care becomes a bigger line item. On top of that, you finally have the time to do the things you have been putting off which often comes with a price tag.
I have reviewed a lot of retirement budget templates, and while they can be helpful as a starting point, I do not find them particularly effective at capturing the real rhythm of someone's lifestyle. They tend to focus on monthly bills, which is just one piece of the puzzle. What they often miss are the one offs— things like replacing a car, helping a child with a down payment, or taking a bucket list trip. Those are things that can move the needle.
When I walk through retirement planning with clients, I often ask questions like:
- What are you doing with your time right now
- Have there been any big purchases in this last year
- Are you helping anyone financially— kids, grandkids, parents
- What does a "normal" week look like for you, and what about a "special" one
These questions tend to reveal more than any spreadsheet ever could.
So if you are planning for retirement or already in it give yourself some grace if your spending is higher than you thought. It does not mean you are doing anything wrong. It might just mean your plan needs to reflect reality a bit better.
And that is exactly what I help people do.