How to Create a Retirement Budget

How to Create a Retirement Budget

| August 09, 2020
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How to Create a Retirement Budget

For many retirees, the fear of running out of money is a major worry. People don’t know how to stretch their Social Security Benefit to pay all their bills, and they’re uncertain about how often, or how much, they can dip into their individual retirement account or other retirement savings.

That’s where a retirement budget comes to the rescue. A budget shows how much money you take in, how you spend it and where you can make adjustments to fill in the gaps. It also helps you prepare for unexpected life events, like a major home or car repair or medical bill. When you have a plan, you reduce your fear of the unknown and avoid a lot of stress.

Here is how to create a retirement budget:

  1. Gather your financial records.
  2. Make a list of your monthly fixed expenses.
  3. List your regular monthly variable payments.
  4. Factor in non-recurring expenses.
  5. Estimate your retirement income.
  6. Compare your total expenses to your income.
  7. Check your budget periodically to make sure you’re on target.

Taking the time to make a retirement budget will help you reach your financial goals and put your mind at ease.

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