What Is Retirement For You?

Updated July 2026

What Is Retirement For You?

Most people assume retirement looks the same for everyone: no more alarm clock, no more boss, endless free time. That’s the surface version. Underneath it, retirement gets shaped by what you actually value and by how much cash it takes to keep living that way.

Golf is a good example. For some retirees it’s a Saturday habit. For others it turns into something closer to a second job, minus the paycheck. The joy is real, sure, but so is the bill. A round at a private course in California can run $120 a person. Tack on cart fees, gear, and travel, and the total climbs fast. SoFi’s 2013 analysis found that retirees spend nearly 33% more on leisure than they did while working.

Family visits work the same way. You picture seeing your daughter in Portland every month, and that sounds simple enough until you add up flights, hotels, and meals. A round-trip ticket from Chicago to Portland averages $350. Multiply that by twelve trips and you’re at $4,200 a year, more than plenty of households spend on all their subscriptions combined. The U.S. Department of Labor points out that people routinely underestimate what it costs to stay close to family once distance and free time enter the picture.

Even quiet routines carry a price tag. Staying home with the dog sounds low-cost, until the vet bill arrives. The American Pet Products Association found in 2013 that the average dog owner spent $843 a year on their pet. That’s close to $70 a month that never showed up in anyone’s working-years budget.

Shopping habits shift too. A 2012 Consumer Financial Protection Bureau survey found that 41% of adults admitted to at least one impulse purchase a week. Work schedules used to keep that in check. Remove the schedule, and the habit can grow. Chase’s 2013 credit trends report showed credit card balances among people over 65 climbed 12.7% year over year, largely from discretionary spending.

Retirement is freedom, no argument there. But freedom comes with a price tag attached, and figuring out what your specific version of it costs matters more than any generic rule of thumb.

Is Retirement Just About Stopping Work?

No, and treating it that way is where a lot of people trip up. Retirement is a lifestyle shift, not a switch you flip. For most retirees, the biggest change isn’t the drop in income. It’s the sudden surplus of time. Once a boss and a schedule stop dictating your hours, how you fill those hours becomes your new identity.

Take a former teacher from suburban Ohio. Gardening was always her thing, but during 30 years in the classroom she only had about 15 minutes between periods to water her plants. Now she spends five hours a day out in the yard. She loves it. It’s also not cheap. Soil, compost, irrigation lines, and tools add up quickly, and in 2013 the average cost to set up a backyard garden in the U.S. hit $327, more than some families budget for an entire vacation.

Gardening is just one example among many, travel, dining out, home renovations, volunteer work all pull at the same wallet. A 2013 Federal Reserve report found that retirees travel 47% more than they did while working. That’s not a one-time splurge. It’s a lasting behavior change, and it needs to be planned for like one.

Not every shift shows up on a bank statement, either. A 2012 National Institute on Aging survey found that 44% of retirees felt “less purposeful” during their first year away from work. Titles like “team lead” or “mentor” just disappear along with the job, and that gap can lead to inactivity, which then bleeds into mental health. The U.S. Department of Labor notes that retirees who stay socially engaged, through volunteering or part-time work, report higher satisfaction overall.

Run the math on something as simple as golf. Twice a week at a public course runs $35 a round. Multiply that by 104 rounds a year and you get $3,640, or roughly $303 a month. Compare that against the average 2013 Social Security check of $1,247 a month, and golf alone eats up nearly a quarter of that income. For a retiree with no other income source, that’s not sustainable. It’s also exactly why the 29% access rate to defined-benefit plans matters so much: without a pension backing you up, a hobby like golf turns into a real financial risk.

How Much Will Your Hobbies Cost?

It’s tempting to think retirement automatically means lower spending. That assumption gets a lot of people into trouble. Activities that used to be “free time” now require direct, ongoing cash outlay.

Golf again: a weekend round at a public course in Florida runs about $35. Play twice a week and that’s $350 a month, $4,200 a year, before you’ve bought a single club. A new set runs $500. Cart rental adds another $15 a round on top of that.

Fishing tells a similar story. A license averaged $28 in 2013, which sounds cheap until you factor in the boat, rods, bait, and fuel. A 2012 U.S. Fish and Wildlife Service study put total fishing-related spending at nearly $25 billion annually, covering just equipment and licenses, not a dime of travel.

Reading isn’t free either. A Kindle runs $79 up front. Books average $15 each, so twelve books a year comes to $180. Read two books a week instead and that jumps to $360. Join a book club on top of that and membership fees run another $20 to $50 a year.

Here’s the catch: this kind of spending only works if you’ve already got real savings behind you. Retirees leaning heavily on Social Security, particularly in states like Mississippi or West Virginia where average retirement income sits below $25,000 a year, may not be able to swing even modest leisure spending. Travel and golf can stay out of reach entirely. Prioritizing hobbies only makes sense once a stable, predictable income stream is locked in first.

What Happens to Your Income, and Your Spending?

Income drops the day you stop working. Spending doesn’t always follow that same curve. In fact, it often climbs, especially in the first five years after retirement.

Work was never just a paycheck. It provided routine, structure, and daily contact with other people. Once that disappears, retirees fill the space with new activities, and new activities cost money.

A 2013 Employee Benefit Research Institute study found retirees spend 18% more on household services like cleaning, lawn care, and repairs than they did while working. The reason is simple: they’re no longer physically doing those jobs themselves. “I used to mow my own lawn,” one Denver retiree said. “Now it costs me $180 a month.”

Healthcare adds another layer. Medicare premiums rose 5.5% in 2013. Retirees without supplemental coverage paid an average of $5,700 out of pocket that year, nearly $500 a month, more than a lot of mortgage payments in smaller cities.

Then there’s inflation, quietly working against every dollar saved. The Consumer Price Index climbed 2.3% in 2013. That means $1,000 today buys noticeably less a year from now, and over 20 years that same dollar shrinks to under $800 in purchasing power. Flat budgets don’t account for that. Retirees need to plan for rising costs instead.

How Do You Plan for the Unknowns?

Most people lowball the true cost of retirement. A 2013 Fidelity survey found 72% of workers believed they’d need about 80% of their pre-retirement income to live comfortably. The real number tends to run closer to 90% to 100%, once travel, health, and leisure spending get factored in.

So what actually fixes this? Start with a real plan, not a guess.

The U.S. Department of Labor’s retirement calculator is a solid starting point. It walks you through modeling income, expenses, and inflation together. Enter your current savings, expected Social Security benefit, and projected spending, then stress-test the whole plan against different inflation rates and healthcare scenarios.

Debt matters here too. The average American carried a debt-to-income ratio of 37% in 2013. Retirees should aim to get that number under 30%. A car loan or a lingering credit card balance can quietly drain monthly cash flow that’s already stretched thin.

Your FICO Score plays a role as well. A score above 740 typically qualifies you for lower rates on home equity lines of credit or a refinance. That matters if you’re considering a second mortgage to fund travel later on. Experian’s 2013 data showed borrowers with scores above 750 landed APRs as low as 4.2%, while those under 680 faced rates of 6.8% or higher.

Frequently Asked Questions

What percentage of workers had access to a defined-benefit plan in 2012?

Only 29% of civilian nonfederal workers had access to a defined-benefit retirement plan in March 2012, according to the U.S. Bureau of Labor Statistics.

How much do retirees spend on leisure compared to their working years?

Retirees spend an average of 33% more on leisure activities than they did during their working years, based on SoFi’s 2013 analysis.

What is the average cost of pet care for a dog in 2013?

The average dog owner spent $843 annually on pet care, including food, vet visits, and insurance, according to the American Pet Products Association.

How much does a round of golf cost on average in 2013?

A round of golf at a public course averaged $35 in 2013. That rises to $120 or more at private clubs, especially with cart and equipment fees.

What percentage of retirees report feeling less purposeful in the first year?

According to a 2012 survey by the National Institute on Aging, 44% of retirees reported feeling less purposeful during their first year of retirement.

How much do retirees spend on travel compared to their working years?

Retirees travel 47% more than they did during their working years, per Federal Reserve data from 2013.

What is the average out-of-pocket medical cost for retirees over 65?

The average out-of-pocket medical expense for those over 65 was $5,700 annually in 2013, according to the Kaiser Family Foundation.

What is the recommended DTI ratio for retirees?

Experts suggest that retirees maintain a debt-to-income (DTI) ratio below 30% to ensure financial stability, especially with no regular income.

How does a FICO Score affect retirement financing?

Retirees with a FICO Score above 750 can qualify for APRs as low as 4.2% on home equity loans, while those under 680 may face rates above 6.8%, per Experian’s 2013 data.

What tools can help model retirement spending?

The U.S. Department of Labor’s retirement calculator offers step-by-step worksheets to model income, expenses, and inflation over time.