Quick Retirement Budget Worksheet Template (Page 2 of 2) in pdf

Quick Retirement Budget Worksheet

Line-by-Line Explanations

Medical expenses (Line 2) – Unless you’re lucky enough to work for a company that pays lifetime

health benefits, it’s likely your medical expenses will rise at least somewhat when you’re retired and

may increase to the tune of several thousand dollars a year. It depends on your own situation and a

lot of uncertainty.

Travel and leisure (Line 3) – The leisure afforded by the nonworking life isn’t free. Unless you’re

already taking lavish vacations and indulging in expensive hobbies, be sure to factor some fun money

into your retirement expense budget.

Income taxes (Line 6) – Your income taxes will decline when you retire. For starters, you’ll no longer

have Social Security taxes taken out of your pay. This could reduce your expenses by almost 8%.

On top of that, a lower retirement income will result in lower federal and state income taxes, and

perhaps property taxes.

Retirement plan contributions (Lines 7 and 8) – These will end when you retire, as well as all or

most of any money you save in non-retirement accounts.

Job expenses (Line 9) – Depending on your own job situation, such expenses as commuting,

lunches, and job attire will no longer be required. If you’re married or partnered, you might even be

able to offload one car.

Mortgage (Line 10) – If you pay off your mortgage (or, perhaps, just pay off a home equity loan)

between now and the time you retire, this could be a whopping reduction.

Tuitions and other child expenses (Line 11) – If you’re currently saddled with tuition and kids at

home, these not inconsiderable exactions will, hopefully, be substantially reduced when you retire.

Prudence might dictate that all child-related expenses probably not disappear from your retirement

budget, since children may always be somewhat needful of the parental purse.

Whatever your situation, you may be delighted to find that your ability to retire in comfort will require

quite a bit less than you had been led to believe.

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adviser with regard to your individual situation. Use of the information contained in this Web site is at the sole choice and risk of the reader.

Quick Retirement Budget Worksheet Template Page 2