Nationwide Financial surveyed over 1,800 people of all ages to understand what they expected their retirement income to be spent on. The rule of thumb for retirement says to plan on needing around 80% of what you’re spending pre-retirement. Across a broad swath of the population, people have pretty similar ideas on what categories they will be spending their money on. VacationThe only thing shocking about spending on vacation costs in retirement is how far down the list it comes. Key takeawayBecause retirement is considered a time of leisure, discretionary expenses like vacation and entertainment will consume 20–25% of a retiree’s income.