You’ve Done the Saving – How Do You Decide What You Spend On In Retirement?

Retirement Savings


It’s every person’s dream—the idea of working your entire life for retirement and then finally being able to reach that precious moment.  But with that dream can come a lot of confusion, questions, and doubt, especially as it concerns how to properly spend your retirement dollars.  Many people are worried about burning through their retirement too quickly and then having nothing to pay bills in their later years.  Others are terrified at the prospect of facing health crises later on that drain what little savings they have, forcing them to turn to their children and grandchildren for support.

Here are a couple helpful tips to ease your mind and assist you in deciding what to spend on your retirement.

Make a budget—This should be a no-brainer, but it is incredibly important you create a post-retirement budget. Calculate every expense you know you have to pay, from your mortgage to food and medicine.  Also, include some that you can “fudge” a little since they aren’t essential like entertainment.  There is no way you can make this exact—things are going to change over the years to come.  But it gives you a framework from which to start.

Calculate your income—Now, you need to calculate exactly how much you predict you will need and compare it with how much you have at your disposal. This will include retirement savings, pensions, and Social Security income.  Estimate about 3 to 4% of your savings being spent each year.  If you predict you will need to spend more, recalculate your expenses to see if you can cut corners.  If you predict you’ll not need that much, you can either adjust your budget for a little more freedom and flexibility or continue to squirrel that money away for an emergency.


The idea of running out of retirement dollars can be a legitimately scary proposition.  That’s why it is so important to plan ahead as early as possible and be sure to create a budget and stick to it.


Tagged with: , , , ,
Posted in Retirement, Senior Finances

McTeam Properties
9457 S. University Suite 740
Highlands Ranch, CO 80126