Which of the following best models long-term expenses growth after retirement in eMoney?

• A. Manually add expenses for every future year.
• B. Create an Advanced Age and adjust Living Expenses.
• C. Increase the total retirement budget by a fixed dollar amount each year.
• D. Use Monte Carlo to simulate living expenses.

Answer: (B)

Modeling how expenses grow over many years after retirement is most accurate when you tie those costs to age and life events. In eMoney, creating an Advanced Age and adjusting Living Expenses lets you specify how spending changes as you get older, capturing age-related shifts like rising healthcare costs or changing housing needs. This approach reflects realistic, non-linear growth in expenses over decades, rather than forcing a single inflation rate or a constant yearly increase.

Filling in expenses manually for each future year is tedious and prone to gaps or errors, and increasing the total retirement budget by a fixed amount each year fails to account for how costs can accelerate with age and inflation. Monte Carlo simulations help explore a range of investment outcomes under uncertainty but aren’t the most direct way to model predictable, age-driven expense growth.