Through the years, the income that experts’ estimate retirees need to have available up has varied greatly. The standard rule of thumb was that 70% of one’s typical earnings should be saved up. Later, this figure was upgraded to 80%, 90% and even above 100% in some cases. How much is really necessary?

Future retirees need to consider how their spending will change post-retirement. Some factors to consider include the cost that raising children and sending them to college costs. At retirement age, most retirees’ children are grown and in the work force; this cost can be subtracted. Further, work-related expenses can be subtracted, and many underestimate the cost of traveling to work and vehicle maintenance. Taxes often drop once one has reached retirement age.

Some costs may rise a bit. Many retirees plan to spend their time traveling, and these expenses must be budgeted. If retirees want to set their bills be paid via online bill pay while they travel around the world, these travel costs must be considered. For many, additional golfing may need to be included in the budget. Some wish to spend their new free time engaged in new activities they did not have time for before retirement. The cost of a boat, for some retirees, must be considered.

If retirees wish to move after retirement, they may find that the cost of living will change dramatically. Moving to a location in the Sunbelt will lead to a significant reduction if coming from New York or Chicago. Likewise, moving to a large city from the suburbs will incur a significant cost for everyday products, services and housing.

If all factors remain consistent, retirees are often best served by sticking with the old advice; 70% of their income when working is often sufficient. While inflation must still be factored in, predictions of rapid inflation are far less common than in previous years. Using this estimate, future retirees can begin to plan for their retirement.

Ultimately, future retirees will want to consult with an expert and ask for financial advice. Factoring in all costs and income post-retirement is a challenging task, and it is easy to overlook important details. A qualified financial consultant has the skills, training and experience necessary to ensure that all aspects of one’s retirement are properly factored in and correctly calculated. Additionally, the peace of mind that these consultations deliver can help make the last months and years of work less stressful.