Income and Expense Budgeting Analysis

It’s important to consider how your income and expenses will change in retirement. Every person who plans to retire should use a retirement calculator in order to determine just how much money they will need in order to retire while maintaining a comfortable standard of living. Some expenses like health care and travel are likely to increase, but many pre-retirement recurring expenditures could be reduced or eliminated. 

According to the Employee Benefits Research Institute, while median household expenses decline with age, housing-related expenses remain the single largest spending category. Healthcare expenses are the second-largest component, and these steadily increase with age.