What will it cost you to live in retirement? You may be asking this question as you plan your future. You could try to answer it by looking at national statistics on living expenses. The Consumer Expenditure Survey from the Bureau of Labor Statistics, is widely cited. But truly, you are the only one with the key to the riddle. And the best answer will come from tracking your own actual expenses….
To get you started, I’m going to review our major retirement expenses by budget category, below. Maybe our lifestyle is similar to yours; maybe not. But it can be helpful to hear how others live and then compare their experience with yours. So, I offer this view into our financial life. Take it for what it’s worth: an example, but not a prescription — by any means.
Spending is a very personal area. No doubt some will be surprised at what we do, and don’t, spend money on. But the details of our own finances aren’t the important point here. Use these numbers, and the following discussion, as reference points to assess and challenge your own living expenses.
For starters, do you know what those expenses are? Are you comfortable that they reflect your true priorities in life? And, do you, or will you, have enough saved to fund them in retirement?