Personal Finance After 50 For Dummies. Tyson MBA Eric

focus groups also found that retirees were spending more than they expected on entertainment and travel, prescription drugs, and gas. It also wasn’t unusual for retirees to overlook inflation. And finally, although retirees were concerned about the potential for high medical and long-term care expenses, they did little planning around those expected expenses.

      The lesson to be learned from all this is that you must have realistic expectations and proper assumptions when planning for your retirement. For more about managing your expenses in retirement, see Chapter 6.

Knowing How Much You Really Need for Retirement

      Most people have a long-term financial goal of retiring someday. For some, doing so means leaving paid work behind entirely. To others, simply cutting back on work or doing something completely different on a part-time basis is most appealing.