Retirees will face a few surprises when it comes time to stop working. By Andrea Browne Taylor, Online Editor 2016 The classic retirement fantasy is simple: Work until 65, get your gold watch and live happily ever after on your pension. Reality is a bit different.See Also: 10 Financial Decisions You Will Regret in Retirement Here are three things no one tells you about retirement. First, Medicare isn’t free. You can and should enroll at 65, but brace yourself for premiums and co-pays. It also doesn’t cover everything, notably long-term care. Buying a medigap supplemental insurance policy can help with out-of-pocket costs. (See also 11 Common Medicare Mistakes to Avoid for more.) Second, you might owe taxes on Social Security. The feds can tax up to 85% of benefits, depending on your income. Thirteen states also tax Social Security. When budgeting for retirement, take income taxes into account. (See also 10 Things You Need to Know About Social Security for more.) Advertisement Third, some senior discounts can stink. Take hotels. While a senior rate might beat the standard rate, you could do better simply by booking on a discount travel site such as Hotels.com. A triple-A member discount might beat the senior rate, too. It pays to check. (See also 5 Senior Discounts to Avoid for more.) These are just a few of the surprises that retirees might encounter. Check out more things no one tells you about retirement to see the rest.