3/19/2015 – What you need to know about the high cost of retirement (MarketWatch)

As you enter retirement, spending habits tend to change drastically. Most couples spend less on dry-cleaning, commuting and clothing, while outlays for health insurance, — which likely falls squarely on family rather than an employer — travel and leisure activities tend to increase. Food and energy consumption tend to remain relatively steady. While this might seem obvious, it is often overlooked when constructing budgets and investment portfolios.

The latest inflation report showed that consumer prices fell by about 1% over the past year, and that overall the world is facing a risk of being in a deflationary environment. Putting aside the economic impact of deflation, which is very dangerous, the reality for retirees and those approaching retirement, is that the official figures hardly add up.

Read the full article at MarketWatch.