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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Upper Middle Class people don't do much.  Mu MIL and mother in retirement only traveled once every few years and only if a wedding or something, went out to dinner or lunch 2-3 times a year only if a reason like former co-workers or neighbor get together.

They do not buy new cars and budget is for house and gifts for grandkids at parties.

My MIL lives in her paid off house at 83. Has no maid or landscaper. Does her own grocery shopping and drivers her perfectly good 2003 car with low miles.

I don't think my MIL has been on a plane in the last 20 years.  She can afford to but at 83 and a widow she dont want to.         [/quote]

From what I saw with my grandparents and now see with my parents, it seems like there are three periods of retirement:

1. The active years (roughly 60-75) are when you spend a lot of hobbies and travel.
2. The sedentary but still independent years (roughly 75-85) are when you don't spend much.
3. End-of-life care years (roughly 85+) are when you again spend a lot.

We probably need $300k annually in Phase 1, $80k annually in Phase 2, and up to $300k annually in Phase 3.  By Phase 3, we can spend down assets like our home, which has a lot of equity that we don't include for retirement planning purposes, but it would become available and could fully fund extra expenses in Phase 3 over Phase 2.  Since we have substantial home equity (say $1.5m+), I favor drawing down more than 4% in Phase 1 to enjoy life as much as possible while we're healthy and active.  
[/quote]

Somewhat going off topic here but I agree that there are phases, and one thing that's tough for couples (especially those with an age gap) is that they will often be physically in different phases at the same time, but their lifestyle is determined by the person who ages faster/worse.[/quote]

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