Planning a budget for retirement can be complicated, and, sometimes, it can feel a bit like trying to predict the future. There are a lot of moving pieces, and a lot of variables. While it may not be possible to plan for everything, here are a few things you should consider when budgeting for retirement.

Know Your Standard of Living

Many people consider downsizing when they think about retirement. But that isn’t always a necessity. It’s good to consider, but it’s more important to be realistic. While you may cut down on things like housing, other costs—like healthcare and travel—may increase. If you want an exciting, globe-trotting retirement, plan accordingly.

Consider Your Debt

How much personal or credit card debt do you have? Is your house fully paid off? These are things that can really impact your post-retirement income. Before you retire, try to eliminate as much debt as you can. But if you’ll still have some left, make sure to factor that into your budget.

Emergencies

An emergency can happen at any time. Yes, even after you retire. If you need to replace your water heater, or cover an emergency room visit, you’ll want to make sure you have a good emergency savings fund. Before you retire, make sure you have enough in your emergency savings fund to cover what you need, and, if possible, keep adding money to it after you retire.

Simplify

One of the best things you can do is to focus on simplifying your finances. This may mean consolidating your savings and retirement funds into fewer accounts, cutting back on unnecessary spending, or tracking down pensions, benefits, and tax refunds. Either way, taking steps to simplify your accounts and expenses will ensure those things are easier to manage as you age, or as loved ones take over your care.

Factor in the Future

Don’t forget to plan for inflation and cost of living increases. This can include trying to increase your savings ahead of time, but it can also mean not withdrawing more than you need from your retirement accounts. Try starting with a smaller withdrawal rate, at first. You can always increase it if you need to.

If you want additional help planning your retirement budget, talk to your financial planner or make an appointment with your local, welcoming banker to find the best plan to help you prosper.