What does your retirement budget look like?
The first step in planning for your retirement is to review your retirement budget. Important point: do it early enough to make the necessary changes. Start listing your planned expenses to see if you will have enough money.
Try our retirement savings calculator to determine where you stand about your goals.
How much money will you need in retirement? Here’s how to find out.
Expenses that may decrease in retirement
The good news is that some of your expenses may decrease in retirement. Over the next few months, take the time to calculate your current payments, for example:
Transportation to go to work
Dinners at the restaurant
Take-out meals
Clothing, including cleaner’s costs
When you are no longer working, these costs should decrease.
Expenses that may increase in retirement
Now think about the expenses that are likely to increase. Be realistic if you want to set a reasonable budget. For example, think about dining out. In retirement, you will have more time to cook, but you may prefer to go out and see people.
Your entertainment expenses could also increase: you can go to the museum or the cinema when it suits you. Not to mention that you may be dreaming of escaping winter…
Finally, do not underestimate the possible increase in your medical costs. Many retirees are taken aback by the cost of their care.
How to reduce your expenses before retirement
You have calculated your retirement budget. Now is the time to make some easy lifestyle changes. Here are seven simple tips for saving in the years leading up to retirement.
- Cancel subscriptions you don’t need.
Having access to all kinds of movies and music online is excellent. But the more services you add, the higher the costs. Since we often pay for them by credit card, we can easily forget how many packages we have. Check your credit card statements to see what your recurring payments are. Then decide if you want to cancel some or opt for cheaper plans.
How to become a super-saver?
- Negotiate the price of your services.
Besides, look at your monthly bills and call the companies to get better rates. Your auto insurance, phone and security system providers may agree to lower your monthly fees.
Three easy and greenways to save money at home
- Cancel some services.
During your busiest professional years, you may have chosen to hire people to help you (with cleaning or landscaping, for example). Calculate what you spend and plan to do these tasks yourself. - Find discounts and offers online.
We always like to pay less, no matter what we buy, right? With a simple search on the Internet, you can find all kinds of special offers (discounts, free delivery, etc.). Type the store name and “discounts” into a search engine. You never know what you may find!
Six tips for shopping online like a pro
- Save on food.
Dining out is an apparent unnecessary expense. But most people also overpay at the grocery store by making impulse or unnecessary purchases. Plan your meals and make a list before you go to save big and avoid waste. As a bonus, you’ll likely eat healthier, which will protect you against costly illnesses in the long run.
How not to spend too much at the restaurant
Seven ways to eat seasonal foods on a budget
- Get help from a financial professional.
Need help building your retirement plan? Make an appointment with an advisor to assess your finances. They can help you spot any gaps between your savings and your planned expenses. This will give you time to make the necessary changes.
Find an advisor near you.
Five tips for finding a trusted advisor
Are you retiring unexpectedly? Here’s how your advisor can help you
