Knowing how much to save for retirement is difficult. Knowing how much to spend during retirement might be even harder. There are two key reasons for that:
- You don’t know how long you are going to live
- You need to decide what the money is for
If you knew exactly how long you would live, knowing how much you can afford to spend would be very simple. But that still leaves the question, “what is your money for?” Do you want to leave an inheritance for your children and grandchildren? Do you want to travel? Do you need it to cover healthcare expenses?
Knowing exactly what expenses you will have in retirement is not easy, so the best thing we can do is make a plan based on what is most important to us. Click here to read more on retirement spending.