Accurately estimating retirement expenses – Make sure you’re saving enough to support your desired lifestyle
Abstract: It’s easy to find rules of thumb to estimate how much one’s golden years are likely to cost. But most Americans could benefit from a little more precision as they try to make sure they’ll have enough to see them through retirement. Underestimating yearly expenses by even a few percentage points can have a significant impact over a 20- or 30-year retirement time frame. This article points out expenses that may increase — particularly in regard to health care — or decrease, while taking note of taxation issues. A sidebar explains the importance of budgeting an annual amount for “surprise” expenses.