A survey from the beginning of the decade found that those aged 65 and older were spending an average of $52,141 per year¹. Retirement brings newfound freedom, but it also demands disciplined financial planning. With a fixed income and potentially rising expenses, having a clear budgeting strategy is essential for long-term planning.

Start by assessing your income sources—Social Security, pensions, retirement accounts, annuities, or rental income. Knowing exactly how much you can rely on monthly allows you to build a realistic spending plan. Track your expenses to identify where your money is going. This helps you distinguish between needs, wants, and potential areas to cut back if needed.

Many retirees spent years following a detailed budget and used that to help build their nest egg. It’s important to view entering into retirement as a sort of reset to that strategy–your savings are yours to enjoy, but new income and spending habits are likely to form in retirement and should be monitored similarly to your working days.

Review your budget regularly—at least annually or whenever your circumstances change—to ensure it reflects your current lifestyle and financial goals. It’s also wise to maintain an emergency fund for unexpected events like medical expenses or home repairs.

Working with a financial advisor can help you refine your budget and make sure your investments and withdrawals align with your goals. Ultimately, a well-planned budget empowers retirees to live comfortably, minimize debt, and enjoy the retirement you’ve worked so hard to achieve.

1. https://www.retireguide.com/retirement-planning/average-spending/

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This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.