Free Retirement Budget Worksheets (5 Key Steps)


Retirement budget planning is a long term process that involves the determination of personal goals during retirement and how to achieve the goals. This process involves several plans, including the source of money/income, a saving strategy, analyzing the cost of expenditures, asset management, and risk assessment. In simple terms, retirement budget planning can be defined as a financial plan of implementing saving and investment projects to act as a future source of income after retirement.

Everyone has a common goal in life, to make his/her life as well as that of their family better. This is the reason why we all go to work, but during retirement, the source of our income comes to an end. The future of our families depends on the retirement plans that we implement during our working time. Retirement budget may not sound like the first thing to do, but its a key element for a successful retirement.

Why Should you Plan the Retirement Budget?

1. To prevent having a mindset stuck. Deciding on the amount of money to save for your retirement can sometimes be challenging for an individual. Many questions come in your mind that easily get your mind stuck. To avoid this, then you need to have a budget plan.

2. Lack of state pension budget. Some states like the United States provides pension budget sponsored by the state. But in other states like Singapore, no such pension sponsorship offered by the state, hence the need to have your own retirement budget.

3. You will not work for all your life. No matter how strong and fit you may seem to be; you cannot work for all your lifetime. But despite that, you want to work forever, that doesn’t mean that you shouldn’t save for your retirement.

4. To avoid dependence. Lack of a retirement budget and a proper one leads to the dependence on others for financial support. To avoid such dependence on your family, it is important to have a retirement budget.

5. To avoid bankruptcy. A retirement budget equips you with a plan of how to spend the less or more you have for your retirement benefit. Otherwise, expenses without a plan or limit will lead to being bankruptcy.

How can the Retirement Budget Worksheets Help?

A retirement budget worksheet helps you to determine the monthly retirement expenses. This is obtained after estimating the essential and nonessential expenses. These worksheets also help you to ensure that your budget is well detailed. The worksheets come with all types of expenses listed down.

Things to consider when planning your retirement budget:

  • Most of the retirement budget savings come from your current working salary.
  • Inflation. No matter how low the rate of inflation is, it is good to consider it. It is good to set both optimistic and pessimistic values of inflation.
  • Time. Yes, it’s never too late to plan for your retirement budget, but time is an important factor to consider. The earlier you plan your budget, the easy it is to achieve it.

Retirement Budget Planner Templates

Retirement Budget Planner Template

Budgeting Worksheet Planner Form

Sample Retirement Budget Worksheet

Retirement Expense Excel Worksheet

Retirement Budget Planner for Microsoft® Excel®

    How to Make a Retirement Budget

    Making a good retirement budget involves a good plan and research to understand clearly about what should be involved in the budget. To ensure that your retirement budget fits your retirement, follow the following steps and questions.

    1. Be detailed

    The first tip to keep in mind before starting making your budget is making your budget as detailed as possible. Making a retirement budget is so challenging that you might give up on it. But the secret is including everything and answering all the questions in your mind. This will help you make a detailed budget.

    A detailed retirement plan helps you estimate the maximum money you need to save as well as the maximum withdrawals. This will ensure that you always have cash whenever you need it.

    2. How much do you plan to spend when you retire?

    This is another important factor to consider as you begin to draft your retirement budget. Most people think that their average daily expenses will lower immediately after retirement. This might be applicable or not depending on the individual.

    A thumb rule for retirement expenses estimates that an individual expense lowers to about 70% to 80% of their expense before retirement. This can help you to get an idea of where to start.

    But this is not always the case. Your real expense will depend on some factors like where you live, the amount of your savings, your lifestyle, among others.

    3. Your earnings

    The amount you will be earning after your retirement should be considered when drafting your retirement budget. This is the amount of money you will get from your pensions if you are entitled to one—the amount of money you will receive from your Social Security plan. Consider the amount you receive from annuities that you entitled to. And finally, any other retirement savings you entitled to. The total makes up your income.

    4. Determine your expenses

    After knowing how much your income is worth per month, then proceed to plan on your expenses. Expenses can be divided into two: essential expenses and nonessential expenses.

    Start with essential expenses. They include the bills that must be paid during that month. They include house rent, loans, household expenses, among others. Some essential expenses have no fixed amount like the electric and water bill. It is advised to use the average for the past months. These expenses are indicated separately.

    Nonessential expenses follow and are written on a different page too. These are the expenses that one can do without. They include travel and vacations, magazine subscriptions, among others. These are the expenses that can be cut to lower the budget.

    5. Estimation of new expenses

    Old age comes with extra expenses that you were not used to them. The biggest new expense that comes with old age is healthcare. Some employers offer healthcare premiums for their employees. But after retirement, no such premiums are received. You need to consider such expenses that arise later after retirement.

    6. Other expenses

    After drafting the above, then go ahead and calculate your total monthly expenditure. Compare the amount to your monthly retirement income. In case you lucky to have remained a good amount, then you can go ahead and add some extra expenses like fun and leisure expenses.

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