September 2001

 

Retirement Worksheet
Jamie H. Thompson, thompsonja@missouri.edu

How we define retirement has changed considerably from how our parents did forty years ago. Retirement no longer means retiring to one’s porch rocking chair. For many of us, it is a time for a life change—an opportunity to embark on a life of choice. Retirement can be the most enjoyable and productive time of life—if it is planned in advance.

In planning for our retirement we must ask ourselves; how do we envision our retirement? Begin the “Retirement Worksheet” by answering this very question. If married, you and your spouse should complete the worksheet separately, compare answers and then discuss your answers together. Addressing the lifestyle you desire in retirement is the first step in planning for your retirement.

How do you envision your retirement?

Where will I live?

Will I remain in my current home?

Ÿ Will it suit me in early and late retirement?

Ÿ Will I be able to maintain the house/yard?

Ÿ Is it energy efficient? Safe?

Ÿ Does it have a bedroom and bath on the ground floor?

Ÿ Will I be able to handle the cost of taxes, insurance, and upkeep?

Would I prefer a smaller house? A larger house? Condominium living?

Will I stay in the same town/city/community?

Will the town/city/community meet my needs?

Will I want to move to a different town/city, community, or state?

Will I want a change of climate?

What are my reasons for my housing decision?

What is my retirement lifestyle?

Will I work? Full-time? Part-time? Not at all?

What will my activities be in retirement?

Ÿ Will I volunteer my time? What charities/ organizations?

Ÿ Will I take education classes? What type?

Ÿ Will I travel? How often? Where?

Ÿ Will I spend my days gardening?

Ÿ Will I play golf, tennis, etc?

How do I want to spend my days in retirement?

This first portion of the worksheet addressed the lifestyle you might desire in retirement. Based on that information, the next step is to look at the dollars you will need to fund your retirement and your expected expenses in retirement.

Where will the money for my retirement come from?

What will I have from my employer?

Pensions and Profit sharing plans? What will be my monthly income from my plan?

Defined contribution plan? What are the balances in my IRA? 401(k)? Other plan?

Social Security?

Have I received my statement?

My monthly benefit at age 62? At full retirement?

Personal investments? What is the balance?

Other income? What is the total balance?

Income from work in retirement? What do I expect as income from full- or part-time work?

What do I project as my monthly expenses?

Housing ___________

Medical/Dental ___________

Insurance ___________

Transportation ___________

Food ___________

Clothing/Personal Items ___________

Travel ___________

Entertainment/Hobbies ___________

Gifts and contributions ___________

Other Expenses ___________

Total Expenses ____________

Accounting for inflation

Will inflation affect me during retirement?

What inflation rate should I use for my calculations?

Retirement will bring change. Aren’t we already experts at adapting to change? We have certainly been doing just that all our lives. To ease gracefully into retirement, it is important to prepare yourself for retirement by planning ahead—long before retirement.

Adapted from “Planning Your Retirement” AARP, 1995