Planning for expenses in retirement
Understanding the true cost of retirement now can help you keep from overspending once you retire. Here are some tips to get you started.
List out the costs of your retirement lifestyle
Think about what you'd like to do in retirement, and make a list of likely retirement expenses. Those costs can include housing, transportation, food and travel expenses.
Check expected healthcare costs
Your retirement may last 30 years or more and healthcare-related expenses can be higher than you expect. Know what your benefits cover and what expenses you'll need to pay out of pocket. See what Medicare will cover and what it will cost you at www.medicare.gov .
Inflation reduces your buying power over time. When you budget future costs, consider that the average prices of goods and services may rise 2% to 3% each year. If you need help estimating your future retirement expenses, contact your retirement plan representative.
Learn more about how inflation affects your retirement savings.