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Your Retirement Budget


One question frequently encountered is whether more or less income will be needed in retirement. Too many people assume the answer is less, when that’s not always true.

Constructing a retirement budget, like the one on the image below, will provide some perspective on that question. You’ll see some expenditures don’t shift much after retirement — like food, clothing and entertainment. Transportation actually declines—no more commuting!

The 3 Hs: Housing, Health, and Handouts actually stay high or go higher, and can place a strain on your retirement lifestyle.


This is the biggest budget category for both workers and retirees. Even if your mortgage is paid off, taxes and insurance keep going up. And as houses age, they need more upkeep.


These expenses increase with age and Medicare is not comprehensive. Plus, medical costs have been rising at more than twice the rate of inflation.


Gifts and contributions are part of “other.” These increase in retirement, perhaps with expanding families or the need for greater assistance. So what do you think your retirement will be like? Will your expenditures follow the pattern from the study or will you create your own? Either way, don’t forget that inflation doubles prices roughly every 20 years. Counting on needing more income in retirement is always the safe bet.


Looking for more budgeting tools? Check out our Budget Planner Calculator!

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