How much income I need will depend on what I want to be doing in retirement.
What will I need to be paying for in retirement?
Whether I can do what I want to do in retirement depends on how much income I have.
What does retirement mean for me?
Retirement for me means I do not need to work to meet my financial obligations.
I may choose to continue to work to keep my mind and creativity active, but I would not need to do that for financial reasons.
Reduce Financial Obligations
- As retirement nears, reduce financial obligations
What do retired people do with their time?
- Travel
- See friends
- Go hiking
- Read
What you do in retirement depends on fitness, location, friends and finance.
Income Sources
Social Security - Peter
Social Security - Sylvia
Fixed Expenses
Housing
- Where will I be living?
- Will I downsize to reduce costs?
- If I downsize, will it be to reduce cost, or save money?
- Can a large property become a retirement project (e.g. working in the garden, growing vegetables)
- Will I have a holiday home that is rented to create income?
- Can I have two homes and rent them both out when I am not there?
- Do I want a home where children and grandchildren can come to stay?
Health Insurance
Utilities
- Power
- Gas
- Telephone/Internet
- TV
Variable Expenses
- Travel and Holidays
- Hobbies
- House Maintenance
- Garden
- Family support e.g. grandkids gifts or education
