How to prepare for retirement and help protect your lifestyle dreams

• Retirement is a new chapter in life, filled with opportunities and challenges. To ensure you can maintain the lifestyle you’ve dreamed of, it’s essential to approach retirement planning holistically.
• To ensure that your plan covers all your needs, plan for for both everyday expenses and significant purchases during retirement.​
• Explore key questions and considerations to shape your retirement strategy.

Build your master spending plan

When planning for retirement, it’s crucial to account for both predictable expenses—such as housing, healthcare, food and leisure—and potential larger purchases. These larger expenses could include mobility aids, home renovations or even discretionary goals like a vacation home or extended travel. By factoring in these possibilities now, you can be better prepared to achieve your dreams without compromising your financial security.

​Estimate retirement income

A good starting point is to estimate how much income you’ll need in retirement. A common rule of thumb is to plan for about 70% of your current income. For instance, if you earn $100,000 annually, you might aim for $70,000 per year in retirement. From there, you can create a detailed spending plan and budget.​

While a financial professional can help you refine your retirement strategy, you can begin by using tools like the Social Security Administration’s retirement calculators to forecast your income and expenses.

Determine fixed and variable expenses

Some expenses will remain relatively steady throughout retirement, such as groceries, utilities, Medicare premiums and leisure activities. However, others may fluctuate. Health-related expenses are often the biggest unknown. Even if you’re in excellent health now, medical needs can increase with age. While Medicare covers many costs, you may need supplemental insurance or funds for long-term care. Planning for these potential expenses now can help you avoid financial strain later.

Define your retirement priorities

Once you’ve outlined your basic expenses and income, it’s time to focus on your broader priorities and goals. Ask yourself:​

Retirement planning is deeply personal, and no two plans are the same. A trusted financial professional can provide valuable insights tailored to your unique circumstances. By combining thoughtful preparation with professional advice, you can create a retirement plan that supports your lifestyle dreams and ensures financial security through every stage of life.