A couple hangs out in a garden. — AFP/File

Few things are essential for a US citizen or couple to keep in mind before getting ready for retirement than figuring out how much money they’ll need to live comfortably and sustain their financial security once they retire. 

Retirement budgeting entails figuring out your necessary and discretionary spending as well as forecasting your post-retirement income. By taking this strategy, you can steer clear of financial traps and raise the likelihood that your golden years will be carefree and joyful. 

These are useful, detailed suggestions for making a successful retirement budget. Working with a financial advisor to discuss your goals and circumstances will help you develop a workable strategy for a comfortable retirement.

The average retired worker received $1,800 in Social Security retirement payments per month in 2023. For a pair with comparable income histories, that adds up to $3,600 monthly or $43,200 annually.

An individual who is preparing to retire typically has $225,000 saved for retirement, or $450,000 for a couple that has saved equally. By adhering to the cautious guideline and deducting 4% annually, this couple will receive an additional $1,500 each month or $18,000 annually.

This typical couple’s combined monthly income from these two sources comes to $5,100, or $61,200, in retirement income annually. Their Social Security benefits will be paid for the duration of their lives, and both amounts will be increased yearly to account for inflation. However, withdrawals from their investment portfolio should be able to be made for at least 30 years.

At an earning of $5,100 per month here’s how a retirement budget might look:

$1,500 for housing

$1,000 for food

$750 for healthcare

$750 for transportation

$500 for discretionary expenses

$500 for other expenses such as clothing

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