Many people who come to me for assistance with retirement income planning are on the cusp of retirement and have never tracked their expenses. If that is the case, no problem, we have methods to estimate spending to get a baseline estimate of your spending needs in retirement.
For those that are trying to get a clearer picture of retirement spending, I often see them list their regular monthly expenses such as utilities, insurance, food, and gasoline. But overlook the irregular expenses such as home and car maintenance, personal property taxes, gifts, etc.; expenses that happen on an irregular basis.
Gift giving in Retirement
To help you think through what you might spend on gifts in a year consider these items:
Your children’s friends, teachers, coaches, etc.
Get well flowers
Consider travel related to gift giving:
Destination or out of town weddings
What does this average you annually, divided by twelve; this gives you an estimated amount that you spend per month.
Retirement planning is setting your self up to be able to afford the lifestyle and activities that are important to you. Part of that is determining what is important to you and how much it costs.