Giving to grandchildren. When grandchildren appear on the scene, their chubby cheeks and gentle coos are often budget breakers. "Retirees give their grandchildren clothing and gifts at all the major holidays and take more trips to see them," says Williams. Include money for gifts and a plan for bequests in your retirement budget.
Less saving. Workers, of course, spend some of their income saving for retirement. About 13 percent of employee spending went to pension, Social Security, and life or other insurance contributions. For retirees, just 3 percent of spending was devoted to their continued retirement security. Finally, saving for retirement can be crossed off your "to do" list.