Spending that slows down as you age
Real retirees spend less in their late 70s and 80s — turn on the "retirement spending smile" instead of assuming flat spending for 30 years.
The flat-spending assumption
By default, the forecast assumes your spending stays the same in today's dollars for the entire plan — that an 88-year-old spends exactly what a 62-year-old does, just adjusted for inflation. Almost no one actually does. Research on real retiree spending consistently finds a pattern planners call the retirement spending smile:
- Go-go years (60s to mid-70s) — travel, hobbies, restaurants, the active retirement you saved for.
- Slow-go years (late 70s to mid-80s) — the pace eases; discretionary spending drifts down.
- No-go years (late 80s on) — everyday spending falls further, while healthcare rises.
Assuming flat spending forever is the pessimistic choice — it can tell people to keep working years longer than they need to.
How to turn it on
Go to My Plan → Profile & assumptions in the app and tick Spending slows down as you age. The rule it applies is deliberately simple enough to say out loud:
- About 10% less spending from age 75
- About 20% less from age 85
- Healthcare and health-insurance expenses are left out — they move the other way, and they keep their own faster inflation.
If you've turned on the long-term-care stress test, that cost is also never reduced — a care need isn't discretionary.
What it changes
Usually: the run-out date moves later, sometimes by years, because the expensive early decades are followed by genuinely cheaper ones instead of imaginary expensive ones. Check the projection before and after toggling it to see the effect on your own plan.
Should you use it?
It's off by default, so the choice is explicit. Reasonable people differ here:
- Turn it on if you want the forecast to reflect how retirees typically behave — especially if the flat assumption has your plan failing late, in your late 80s or 90s.
- Leave it off if you'd rather plan against the harsher assumption and treat any age-related slowdown as a bonus cushion.
Either way, you know which assumption you're making — which is the point. An educational estimate, not financial advice.