Retirement can conjure up a lot of worrisome prospects, from physical decline to diminished social contact — and then there's the money.
Almost half of Americans in a recent survey said they were "very concerned" or "terrified" about the impact of increases in their cost of living during retirement.
How worried do they really need to be?
Recent studies indicate that while spending patterns shift in retirement, the overall trend in real dollars is down, and for the majority of retirees in the middle and upper income quintiles, they may find themselves with income that exceeds their spending.
"Your spending declines faster than inflation erodes your savings," said David Blanchett, head of retirement research at Morningstar. He said he dislikes using anecdotal evidence, but he has been talking and writing about this for some time, and he said he believes the vast majority of financial advisors with long-term clients have seen a similar pattern.