b'Spending in RetirementIn planning for retirement, we are often told well need at least 75% of our preretirement income to spend steadily throughout retirement. HRS collects a lot of information on spending before and during retirement, and a somewhat different picture appears with many different pieces making up the puzzle. In the graphic below, we show the major categories of spending and the average percentage of total household spending in that category in 2017. For example, 46% percent of total household spending was on home-related expenses. 11% Food expenses include food and drink, including alcoholic beverages,Home-related expenses include46%that are bought in grocery and other stores. mortgage, property taxes, homeowners or renters insurance, rent, utilities, home repairs, home 11% Health expenses include out-of-pocket furnishings, household cleaning supplies,(uninsured) health insurance costs;housekeeping and laundry services, and out-of-pocket costs for prescription andgardening and yard supplies and services.nonprescription drugs; out-of-pocket costs for hospital care, doctor services, lab tests, eye, dental, and nursing home care; and out- Entertainment expenses include10%of-pocket costs for medical supplies. trips and vacations, tickets to movies, sporting and performance events; hobbies and leisure equipment; dining out in restaurants, 3% Clothing expenses include cafes, and diners; and take-out food. clothing and apparel, and personal care products and services.Other expenses include contri- 6%butions to religious, educational, 13% Transportation expenses include charitable, or political organizations, andcar payments, vehicle insurance,cash and gifts to family and friends.vehicle maintenance and gas.Source: Ebrahimi, Employee Benefit Research Institute, 201920'