Many mutual fund companies and the investment consultants who sell the products project future growth rates based on past performance without acknowledging the likelihood of underperformance. It's great for selling securities but it is absolutely dishonest. I have brought together a group of retirees to discuss this issue. Surprisingly, a big drain on retirees' funds are the additional financial needs of adult children. It is hard to turn them down.
Medical expenses increase, especially the costs of prescription drugs.
Parental support and the expenses associated with assisted care living can rapidly deplete funds. And don't forget the unexpected home improvements and care maintenance costs that eat into a budget. Also, recreation and travel expenses are higher than expected. I would advise an increased focus on saving, certainly more than the 10 percent figure quoted by the financial media. Try living on a retirement budget for a year and bank the savings.