What lifestyle do you want—and how much will it cost?

Plan your budget: Now is the time to get a handle on what your retirement expenses may be. Consider, too, which expenses will be “must-haves” and which may be “nice-to-haves.” Then estimate how much each one may cost you.

Envision your lifestyle

• How will you spend your time and who will you spend it with?
• Will you continue to work?
• Where will you live? Will you sell or buy a home?

Some common expense categories include:

• Clothing
• Housing: e.g., mortgage and rent
• Utilities: e.g., electricity, gas, oil, phone, cable, and Internet
• Transportation: e.g., car payments, gas, and repairs
• Child care, eldercare
• Pets: e.g., care, vet, supplies, etc.
• Food
• Travel
• Medical bills: e.g., co-pays, insurance
• Entertainment: e.g., dining out, theatre, parties, etc.
• Memberships: e.g., clubs and subscriptions
• Charitable donations: e.g., church, alma maters, community, etc.
• Other expenses

THINGS TO CONSIDER

• Leisure activities
• Travel
• Career goals
• Volunteer work
• Mental fitness
• Physical fitness
• Family time
• Entertainment/friends
• Nearly 70% of baby boomers say they expect to continue working well into their retirement years.
• More than half-a-million 50-somethings are enrolled in undergraduate or graduate degree programs.