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The Retirement Lie No One Talks About — and How It Could Cost You Thousands

Sat, Sep 13, 2025, 11:17 AM 4 min read

When you dream of retirement, you probably envision a relaxed life, unburdened from preparing expense reports. Yes, days spent enjoying your hobbies and time with loved ones are generally easier, but you shouldn’t get lulled into a sense of complacency about everything in retirement. You can’t afford to get lax about your finances — quite literally.

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Just because you’re off the clock doesn’t mean you’re free from paying your rent or mortgage. You’re still on the hook for groceries and utilities, taxes and car maintenance, and healthcare expenses. As you get deeper into your golden years, you’ll need to have more on hand for healthcare costs.

Yet many people are underprepared for the financial challenges of retirement. Even AARP has reported on the phenomenon of people who were surprised by the “sudden expenses” of retirement. The surprise comes from thinking that once you’re retired, the cost of life will somehow slow down with the pace of it. Unfortunately, that’s simply not true — and believing the lie could cost you big.

You may not be in the workforce anymore, but that doesn’t mean you stop spending. Your morning trip to the grocery store, afternoon doctor’s appointment, and evening meal with friends should tell you as much. It can be easy to forget when you’re no longer tracking a paycheck, but almost everything you do costs money.

Financial experts commonly suggest that retirees will need roughly 70% to 80% of their pre-retirement income to maintain their standard of living in retirement. This range accounts for typical decreases in some expenses, like commuting, but also considers increases in other areas, such as healthcare.

That said, individual circumstances can significantly influence this percentage. If you’re more likely to be active in retirement, filling your days with travel and hobbies, you should be prepared to add to your annual retirement budget to accommodate those additional expenses. It’s also important to factor in healthcare costs, which tend to rise with age and can quickly eat away at your retirement budget.

From paying your property taxes to shelling out the copays for your doctor’s visits, you’ll need to be prepared financially. If you’re not, you could find yourself racking up serious credit card or medical debt. And the tax man could come calling.