Planning your budget for retirement is crucial to ensure financial security and peace of mind. A Retirement Budget Planner is a tool that helps you estimate your expenses and income during retirement so you can manage your money effectively.
Retirement Budget Planner
Plan how long your savings will last, project yearly withdrawals and see potential shortfall. This is an estimator — for personalised advice consult a financial planner.
This tool assumes deterministic returns (no Monte Carlo). It shows if your plan is sustainable under the assumptions.
How it works
- We grow your savings at expected real return (i.e. nominal return minus inflation) and subtract inflation-adjusted withdrawals each year.
- If balance reaches zero before life expectancy, the plan is not sustainable under current assumptions.
- Use lower withdrawal or increase savings/other income to improve sustainability.
What is a Retirement Budget Planner
A Retirement Budget Planner is an online tool or worksheet where you list your expected income sources and estimate your expenses in retirement. It helps you create a budget tailored to your lifestyle and financial goals after you stop working.
Why Use a Retirement Budget Planner
Using a planner helps you
- Understand your income and spending needs in retirement
- Identify any gaps between income and expenses
- Plan savings and investments to cover future costs
- Avoid running out of money during retirement
- Make informed decisions about lifestyle choices and spending
How Does the Planner Work
To use the planner you enter information such as
- Your expected retirement income including pension superannuation and other sources
- Monthly or yearly living expenses such as housing food health care and leisure
- One-off expenses like travel or home repairs
- Inflation rates or changes in costs over time
The planner then calculates your overall budget and highlights any shortfalls or surpluses.
Benefits of Using a Retirement Budget Planner
- Provides a clear picture of financial needs in retirement
- Helps set realistic spending limits and savings goals
- Encourages proactive financial management
- Reduces stress by preparing for future expenses
- Supports better decisions on timing retirement and withdrawals
Important Notes
- The planner gives estimates and should be updated regularly
- Consider unexpected costs or emergencies in your plan
- Review your plan with a financial advisor for accuracy
- Adjust your budget as your situation or goals change