Creating a Retirement Budget
Contrary to popular belief, retirement isn’t a finish line.
It’s the start of a new chapter in life – one you’ve been working toward for decades.
As exciting as retirement is, it always comes with big questions. If you’re like most people, you wonder, “Will my savings be enough? How can I make sure my money lasts as long as I do?”
A smart way to begin processing questions like those is to prepare a retirement budget.
In doing this, you’re not simply trying to keep your expenses in check. You’re also creating a spending plan that will enable you to fully enjoy the years ahead on your terms.
Creating a retirement budget starts with considering the income streams available to you. You’ll likely have some or all of the following:
- Social Security benefits you’ve earned over decades
- Pension payments from your years of service
- Retirement account withdrawals from your disciplined saving
- Part-time work income if you choose to stay active
- Investment income from your wealth-building journey
Once you know how much income you’ll have, you can begin to think through your spending. Keep in mind that retirement – for most folks – unfolds like this:
- Early retirement: When you’re healthy and more energetic, you’ll likely spend more on travel and new experiences. By accounting for these extra costs in your budgeting, you can avoid depleting your resources too soon.
- Middle retirement: In these years, you may see your expenses level out as you discover what truly matters most to you. That might be hobbies, family time, or meaningful volunteering.
- Later retirement: In this phase, you may see your healthcare costs rise. However, this is often offset by other expenses decreasing as your lifestyle naturally shifts.
At Meriwether Wealth & Planning, we know that wise retirement planning looks beyond spreadsheets. What really counts is living with purpose and peace of mind.
If you’re beginning to think hard about retirement planning and have questions, we’d love to visit with you. Click here to understand your 401k options as you near retirement.
For years, we’ve been helping clients create retirement plans that align their available resources with their legacy goals and bucket list desires.
Ready to start planning your future? Schedule a call here!
This content is for educational purposes only and should not be considered personalized financial advice. Please consult with a qualified financial professional to discuss your specific situation and needs.