1. Learning Objective # 3 Estimate your retirement spending needs. LO#3

2. Estimating Retirement Living Expenses  Spending patterns and where and how you live will probably change.  Some expenses may go down or stop.  Work expenses - gas, lunches out.  Clothing expenses - fewer and more casual.  Housing expenses - house may be paid off, but taxes and insurance may go up.  Federal income taxes will probably be lower. LO#3

3. Estimating Retirement Living Expenses  Other expenses may go up  Life and health insurance unless your employer continues to pay them  Medical expenses increase with age  Expenses for leisure activities  Gifts and contributions  Inflation will raise the amount you need to cover your expenses over your probable 16- 20 years in retirement LO#3