Lifestyle Expense Reflection Worksheet: Preparing for Retirement with Your Current Lifestyle in Mind

11/12/2024

When planning for retirement, it’s easy to focus on broad financial goals, but the finer details of lifestyle expenses are just as crucial. For those accustomed to a certain standard of living, overlooking ongoing costs like memberships, property upkeep, or personal services can lead to unexpected financial strain. This worksheet is designed to help you take a close look at the specific lifestyle costs that may shape your retirement budget, ensuring you’re prepared for the lifestyle you envision.

Memberships & Subscriptions:

• Do you belong to any private clubs, such as golf, social, or country clubs? What are the annual membership fees and other associated costs?
• Are there other exclusive memberships or subscriptions (luxury gyms, wine clubs, etc.) that you currently enjoy and plan to keep?

Property Upkeep:

• If you own multiple properties, have you considered the ongoing expenses involved in maintaining each one? Think of insurance, landscaping, taxes, and upkeep.
• For vacation homes or rental properties, do you employ a property manager or other maintenance support? Will this be a cost you’ll continue to carry?

Travel & Leisure:

• What do you typically spend on luxury travel annually? Have you considered whether this is likely to increase, decrease, or remain steady during retirement?
• Do you have any future travel goals or “bucket list” experiences that might require additional funds?

Personal Services:

• How much do you spend on regular personal services like private chefs, personal trainers, or household staff? Will these expenses continue into retirement?
• If you anticipate scaling back, what will that realistically look like?

Health and Wellness:

• Are you currently engaged in any wellness programs, such as personalized healthcare, specialty treatments, or alternative therapies? What are the current and projected costs?
• Do you have any plans for additional care or wellness investments as you age, including high-end assisted living options or in-home care?

Vehicle & Transportation Costs:

• How many vehicles (including luxury or classic cars, boats, or other recreational vehicles) do you own, and what is the annual cost of maintaining, insuring, and storing them?
• If your lifestyle involves private transportation (like jets or charters), what are the recurring costs, and do you expect to maintain this pace in retirement?

Dining & Entertainment:

• What do you typically allocate to fine dining, events, or hosting gatherings? Is this an area of spending that you want to maintain?
• Are there any luxury hobbies (such as wine collecting, art, or other cultural investments) that you’re committed to in retirement?

Legacy & Gifting:

• Do you regularly provide financial support to family members, fund family vacations, or make charitable donations? If so, what is the annual cost?
• Have you considered how much of this support you wish to maintain or potentially increase as part of your retirement?

Education & Lifelong Learning:

• Do you plan to continue any educational pursuits or courses, whether through formal programs, workshops, or cultural trips? What are the anticipated costs?
• Are there any new skills or hobbies you anticipate taking up that could require substantial financial investment?

Contingency for Unexpected Lifestyle Costs:

• Have you set aside funds specifically for unexpected lifestyle expenses that may arise, such as unforeseen home repairs, health emergencies, or other surprises?
• How will you ensure that these potential costs won’t impact your planned retirement spending?

Retirement planning is about more than simply replacing income; it’s about aligning your finances with your lifestyle and aspirations. By considering the nuances of your current spending, you’ll gain confidence that your retirement plan reflects the full scope of your life’s commitments and pleasures. Use this worksheet to begin thinking through these details, and don’t hesitate to consult your financial planner to craft a retirement strategy tailored to support your vision of the future.

Planning Capital Management Corp is a Registered Investment Advisor with the SEC, and we are held to a fiduciary standard with all of our clients. We offer full financial planning in conjunction with investment advice and portfolio management. Should you have any questions or concerns about current market conditions, or just general financial planning questions, schedule a call with us!