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One of the most complex parts of preparing for retirement is thinking about life where working and building income isn\u2019t the main focus. At times you may become so overwhelmed thinking about saving for an unknown future that you end up not saving anything. You need a road map that can change course if necessary but keeps you headed toward your intended destination.<\/p>\n
Before you hit the road, you\u2019ll need to think about what your life might look like in retirement. Then start to estimate how much everything will cost. Since you can\u2019t accurately predict future prices, use inflation as a benchmark\u2014the average inflation rate in the US over the past century (1913-2013) was 3.22%. So it makes sense to plan for higher prices in the decades ahead.<\/p>\n
You\u2019ll also want to factor in your day-to-day expenses, like\u00a0housing costs, food, and healthcare. Some of your current expenses, such as a mortgage or childcare, may no longer exist but could be replaced by new ones.<\/p>\n
Some expenses to factor into your calculations:<\/strong><\/p>\n Income you could receive in your post-working years:<\/strong><\/p>\n\n