Retirees often spend too much early in retirement and risk running out of money. While conventional wisdom says retirees spend 75% of what they did working, rising costs of healthcare, housing, education, and supporting family means retirees' expenses may not decrease as expected. Many also retire earlier than planned due to illness or because they can afford to. This misguided notion that spending will decrease leads to faulty retirement planning and savings. To better manage spending in retirement, people should realistically assess their spending habits and make plans to cut costs where possible through budgeting and spending less on unnecessary items.