Cost of living Calculator for retirement

The spreadsheet below is useful for recording detailed expenses. In later steps, income will be added and then compared to expenses to determine gaps. You control the catagories and the amounts. Try to be as realistic as possible. Various versions can be created to compare different possible alternatives.

You can accomplish these same calculations yourself by creating an excel spreadsheet to list expenses. There are simple formulas involved that are explained as each section is described. Please send an email through "Contact Us" if you have any questions.

The cost of living calculator below shows expenses through time. An actual excel spreadsheet could run out to age 90 or beyond. Include every catagory of expense that could be incurred. By detailing out each expense, you can get a clearer picture of your retirement needs and document your goals at the same time. This will give you a better chance to have retirement costs hurdled or at least be made manageable. The total at the end of each row is a handy way to know how much you are spending over time.

If budgeting has not been a normal everyday practice, take the time to assess spending in every catagory. Mark items as they are recorded so that they can be grouped at the end of the month. Track each category for several months. This will give you reasonable numbers for a spreadsheet like the one above. Multiply monthly cost by 12 to get annual cost.

In addition, to suppliment your research, it is helpful to have a financial advisor. An experienced person can review your retirement plans and make suggestions for investments, insurance, and retirement costs and planning in general. You want someone who has your best interests at heart. They can look at the current rate of inflation and review appropriate cost of living indexes to show future impact. Make sure you know how they are getting paid and what their motivations are.

In general, there are a number steps that can be taken to give the best chance to be ready for the retirement years.

• Plan for a longer life after retirement. Don't underestimate.
• Keep close track of your investments. Take a conservative approach.
• Keep spending under control.
• Be well protected with sufficient life insurance.
• Develop multiple sources of income. Where is the money going to come from.
• Consider part time work to supplement other sources.
• Willing to modify standard of living to a reasonable level.

If using the above cost of living calculator is done properly, then conquering retirement hurdles can become a reality. At any rate, you want to retire from your job with some time left and not work until you die.

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