One very important step in retirement planning is figuring out how much you are going to spend each month once you retire. This may seem like an impossible task but our Cost of Living Calculator simplifies this by breaking out your normal monthly expenses, allowing you to make adjustments based on how you envision spending your retirement.
List all your current monthly expenses (be honest and complete). Then make adjustments for items you think will change when you retire.
|Description||Current Amount||Adjustment for Retirement||Retirement Amount|
|Gasoline for Car|
|Cell Phone Bill|
|Subscriptions (Netflix, Amazon, Magazines, etc.)|
|Entertainment/Activities (Concert ticket, swim lessons, etc.)|
|Loan Payments (Other than motgage or car)|
|Future % of income needed:|
If you don’t already have a monthly budget, this would be a great time to make one and try to stick to it. You will begin to see exactly how much you are spending on your morning coffee, eating out, activities, etc. It is important that you are as detailed and accurate as possible. Also, be realistic about your adjustments for when you retire. Don’t remove your car payment if you want to drive a new car every 3 years. Once you have all your expenses and adjustment entered, take the “Future % of income needed” and plug it into our Retirement Planning Calculator to see how your future spending will affect your savings.