What is the retirement spending 'smile' and why does it matter?

The retirement spending smile describes how real spending often changes over time. Early in retirement, the 'go-go years,' people spend more on travel, hobbies, and experiences while they're healthy. In the middle 'slow-go years,' activity and spending naturally decline. Late in retirement, the 'no-go years,' spending often ticks back up because of healthcare and long-term care costs – forming a U or smile shape. This matters because the standard assumption of steady inflation-adjusted spending every year can overstate how much you need overall, yet understate late-life medical costs. Planning around the smile lets you spend more confidently in your active early years, then budget separately for a possible healthcare spike later. Build a flexible plan that front-loads experiences while reserving a cushion for late-life care rather than assuming a flat budget for 30 years.