A retirement planning worksheet is simply a handy way of weighing your costs and benefits. This may be undertaken well before retirement so that you have an idea of what to expect and how to budget your expenses. Alternately, making a monthly or weekly worksheet may help you see what you’re spending on and what you might like to cut back on.
There are certain aspects that are essential for any retirement planning worksheet and must not be excluded from the budget. These include the following:
- Food and heating
- Life insurance
- Debt payments, such as mortgages, etc.
What’s likely to go up?Some expenses are likely to increase after retirement. These may include the following:
- Healthcare – Despite being eligible for Medicare after the age of 65, there are still some expenses to be incurred. This includes copays, deductibles, and procedures, such as dental, that are not covered by Medicare. You may also choose to buy MediGap or Medicare Advantage Plans to supplement treatments that are not covered by Medicare. All these must be a part of your retirement planning worksheet.
- Lifestyle expenses – Retirement allows you to explore options you never had time for before. This includes hobbies, vacations, or even remodeling your home. Just remember that these too cost money and must be made a part of your budget.
What’s likely to decrease
- Gas and food may not cost as much if you choose, for example, to stay home and cook more often now that you have some time to yourself.
- Debt payments such as mortgages if you have paid them off.
- Payroll taxes
- Income tax. However, some retirement saving plans are taxable as income once you start withdrawing from the fund.
A retirement planning worksheet is thus a helpful way of planning your retired life from a financial perspective. It may also help you in choosing a lucrative retirement savings plan that will help you achieve everything you have been putting off for your retirement.