Solution: Create an Income Plan
For starters, don’t assume that you’ll spend a lot less in retirement. Most retirees spend between 80 and 90 percent of what they were spending during the year before they retired, Geary said. So your savings need to be able to generate enough monthly income to sustain your current spending habits.
If you’re already retired and didn’t calculate how much income you would need to cover monthly expenses, you might have to make adjustments in your spending. Geary recommends distinguishing your needs from your wants and calculating how much you need to get by each month versus what you’re also spending on wants.“That gap has gotten pretty big,” he said. Eliminating many of your wants might help you make your retirement savings last longer.
