INSTRUCTIONS

Step 1: Starting with your current bills and spending habits, fill in each category of the budget worksheet. Wherever possible, use your bank statements, credit card bills, and financial account statements to accurately record your spending in each area.

Step 2: Using your current spending as a guide, estimate how much you will spend in each category in retirement. Keep in mind that most retirees spend close to their pre-retirement levels in most areas except food, transportation, clothing, and other job-related expenses. Medical expenses may go up in retirement as you transition away from employer-sponsored health insurance and start planning for long-term medical needs.

Step 3: Think about major purchases that you may make, such as remodeling your kitchen, buying a new car, or upgrading your household appliances. Also think about what's on your bucket list: big expenses like milestone vacations, charitable gifts, or a new boat or RV will need to be factored into your retirement planning.