How Much Money Will You Need Annually When You Retire
When it comes to retirement planning most people know that they need some sort of income, and they know they need more than social security, but they don't know how much. Most people say things like, "I'll need $500,000 in savings to retire. I can live comfortably on $50,000 a year in retirement." Someone else might say, "I have my pension from work. That will be enough." The question remains though, is it enough, or is it too much? The worksheet below should give an individual a very good guide regarding their actual needs during retirement.
Income
Your pension __________
Social Security __________
IRA __________
Keogh ___________
401(k) __________
Annuity ___________
Your spouse's pension __________
Your spouse's social security __________
Your spouse's IRA __________
Your spouse's Keogh __________
Your spouse's 401(k) ___________
Your spouse's annuity __________
Income from business __________
Dividends __________
Interest __________
Rent paid to you __________
Income from trusts __________
Gifts to you __________
Alimony received __________
Tax refunds __________
Other __________
Total Annual Retirement Income __________
Expenditures
Home
Mortgage or rent
Electricity
Gas
Water and Sewer
Telephone
Property taxes
Homeowner's insurance
Household help
Furniture
Other household items
Home maintenance
Other maintenance costs (appliances, etc.)
Other
Family
Food and grocery ___________
Clothing __________
Laundry and dry cleaning ___________
Toiletries and drugs ___________
Birthday, holiday, and other gifts ___________
Medical expenses ____________
Medical insurance ___________
Dental expenses _____________
Dental insurance ____________
Eye doctor _____________
Eye glasses ____________
Life insurance _____________
Other insurance expenses ______________
Other ______________
Transportation
Gasoline __________
Auto insurance ___________
Auto maintenance ____________
Auto payments ____________
Other auto expense ____________
Other travel expense ___________
Other ___________
Leisure
Vacations ___________
Movies and theater ___________
Cable television ___________
Magazines and books ___________
Restaurant, dining out __________
Club memberships _____________
Educational expenses _____________
Hobbies ____________
Other _____________
Taxes
Federal withheld ___________
Federal estimated ___________
State withheld ___________
State estimated ____________
Other ____________
Other Expenses
Installment loans ___________
Investment expenses ____________
Accountant's fees ___________
Attorney's fees ____________
Charitable contributions ______________
Policitical contributions ______________
Other _____________
Total Expenses ___________
Total Income ____________
Less Total Expenses ____________
Equals Surplus or Shortfall ___________
If you have a shortfall, you will need to increase your annuities.
If you have a surplus, don't stop putting money away. All this means is that you will probably be OK. However, you never know what is going to come up.