The Retirement Spending Smile Nobody Told You About

Last updated: October 12, 2026

What people actually spend in retirement doesn’t climb in a straight line, and that changes how you build your paycheck.

Does spending really go down in retirement?

Here’s a question most plans never ask. Will you spend money at 82 the same way you spend it at 62?

The traditional plan assumes you will. It takes your first-year number, adds a fixed bump for rising costs every year after, and runs that rising line out for three or four decades. Clean math. It just doesn’t match how people actually tend to live.

Researchers who studied how retirees really spend, David Blanchett among the best known, found a different shape.¹ Spending tends to run high in the early “go-go” years, when you’re healthy and finally have the time. It tends to ease through the “slow-go” years, the middle stretch, as the pace of travel and big-ticket fun naturally settles down. Then it often ticks back up late in life, in the “no-go” years, when health and care costs move to the front. Losing the ability to drive can add a new bill in those years too. See how seniors who can’t drive get around. High, then easing, then rising again. Draw that on paper and it looks like a smile. Golf is one of the things that holds on longest. And the price often drops as you get older. Several clubs cut the bill again at 70, at 75 and at 80. On the other hand, golf trips likely happen earlier in retirement, when you’re healthier. A bucket list golf trip is a one time expense, not an ongoing annual bill. We priced out the bigger trips the same way. Here is what a trip in retirement really costs.

None of that is a promise about your life specifically. It’s a pattern across a lot of retirees. Yours could look different. The point is that the straight, ever-climbing line the industry builds around is the one shape the research doesn’t support.¹

What Are the Five Stages of Retirement?

The stages of retirement people often cite come from gerontologist Robert Atchley. His 1976 model has five: honeymoon, disenchantment, reorientation, stability and termination.²

• Honeymoon: the free-time high right after you stop working.
• Disenchantment: the letdown some people feel when the newness wears off.
• Reorientation: figuring out what the days are for.
• Stability: a routine that works.
• Termination: when illness or disability takes away independence.

Some versions add a sixth, pre-retirement, at the front.³ Some stages can come early or not at all. A routine can start right after you retire.³ In a large U.S. study, about 70% of retirees saw little change in how they felt.⁴

Money has its own stages, and they line up with these. The honeymoon is the go-go years, when the trips happen. How people typically spend in retirement is what the rest of this page covers.

Why the spending smile changes how you build your paycheck

This is where it stops being trivia and starts being money.

Picture your retirement income floor, the guaranteed, protected money that covers your life once you’ve stopped working. It’s built from a few pieces. Social Security sits underneath it and rises over time through its own cost-of-living adjustment. If you have a pension, that may sit there too. On top of those, guaranteed lifetime income, which we call Protected Lifetime Income (PLI), fills the gap to the life you actually want. That PLI piece is a level payment. It doesn’t rise with inflation.

Now, the natural worry. If part of my income floor is level, doesn’t rising cost of living eat it alive over 30 years?

Here’s what the spending smile does to that worry. Because we build the PLI piece higher than bare minimum on purpose, to front-load the adventures, the experiences, and the memories with the people you love in the early, healthy years, that level payment starts out covering the biggest, most active phase of your retirement. Then, as what you actually spend eases through the middle years, that same payment covers a bigger and bigger share of a need that’s now getting smaller. The PLI stays level. The need drifts down toward it. And underneath the whole thing, your Social Security keeps climbing with its cost-of-living adjustment.

That’s the hedge. It can help offset rising costs and tends to help keep pace with them over time, because of how the easing spending curve and the level payment meet in the middle. It isn’t a promise that it offsets every dollar of inflation. Nobody can promise that, because nobody knows what inflation will do. It’s a design that puts the money where the living actually happens.

The memories are the whole reason we front-load it

Ask yourself what you want your grandkids saying about you in 30 years. It won’t be “remember when Grandma left us that account statement.” It’ll be the trip. The lake-house week. The Christmas everybody was under one roof. That’s the part of retirement the traditional plan treats as a rounding error, and it’s the part we build for first.

Front-loading the income floor is how you fund the memories while you’re healthy enough to make them, instead of underspending your best years out of fear and leaving the biggest checks to a hospital and a nursing home. The spending smile is the research that says you’re allowed to.

One important line: this is about after you claim, not before

The spending smile lives in the years after you claim Social Security and settle in. It does not describe the income bridge years, and the income bridge is the piece people get wrong. The money that carries you from 55 or 60 to the day Social Security starts is a fixed amount. It does not adjust for inflation. Nothing on the market gives you guaranteed income for that short a stretch with a cost-of-living bump built into it, so we don’t build one in. As your costs creep up over those income bridge years, that difference comes out of your growth account, the savings we deliberately left liquid instead of spending every dollar to build the income bridge.

That’s the setup working in your favor, not against you. Nothing forces you to pull from the growth account, so you decide. In a good year, you take the small top-up, keep pace with rising costs, and barely notice it. In a down year, you have the option to leave the account alone, take one less trip or hold the bump for a season, and let it recover instead of selling low.

What you don’t do is cut the early-retirement number because of the smile. The income bridge years fall in the high-spending, active stretch of life, not the easing one, so we size them on the full need. If anything, retiring early asks for more savings, not less: more pre-claim years for the income bridge to carry, plus a growth account big enough to cover those rising costs and still grow. That’s why the savings numbers on our retire-at-55 and retire-at-60 pages land where they do.

• Can I Retire at 55? Here’s What It Takes
• Can I Retire at 60? Here’s What It Takes

Run your own number

The easiest place to start costs nothing and asks nothing of you. Put in your own savings, the income you want, and the age you’d claim, and see what the picture looks like for you specifically.

Frequently Asked Questions

Sources

1. David Blanchett, “How Spending Evolves in Retirement: A Smile, a Smirk, or Something Else?” Financial Planning Review, 2026. Open access. Blanchett’s study of Health and Retirement Study data, which finds that inflation-adjusted retiree spending tends to decrease over time, challenging the common assumption that expenses rise in line with inflation throughout retirement, and that even relatively well-off retirees typically reduce real spending. The paper supports both a smile and a smirk shape depending on the modeling assumption: the median retiree keeps declining, a smirk, while averaging across all retirees shows an increase at older ages, a smile, which Blanchett attributes to healthcare shocks that hit some retirees and not the typical one.
2. Yu, Zhang and Wu, “Retirement Transition,” Encyclopedia of Gerontology and Population Aging (Springer), describes Atchley’s five-stage model. (2021)
3. Bertić and others, 2024, describe Atchley’s six-stage model and note that some phases can begin right after retirement.
4. Wang and Wanberg’s 2017 review in the Journal of Applied Psychology summarizes Mo Wang’s study of retirees’ well-being.