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Step 1 Lifestyle

The 5 Steps

Step 1 - Lifestyle 
Step 2 - Healthcare 
Step 3 - Sources of Income 
Step 4 - Saving 
Step 5 - Future Income 
 

What lifestyle do you want—and how much will it cost?

Plan your budget: Now is the time to get a handle on what your retirement expenses may be. Consider, too, which expenses will be "must-haves" and which may be "nice-to-haves." Then estimate how much each one may cost you.

Envision your lifestyle

  • How will you spend your time and who will you spend it with?
  • Will you continue to work?
  • Where will you live? Will you sell or buy a home?

Some common expense categories include:

  • Clothing
  • Housing: e.g., mortgage and rent
  • Utilities: e.g., electricity, gas, oil, phone, cable, and Internet
  • Transportation: e.g., car payments, gas, and repairs
  • Child care, eldercare
  • Pets: e.g., care, vet, supplies, etc.
  • Food
  • Travel
  • Medical bills: e.g., co-pays, insurance
  • Entertainment: e.g., dining out, theatre, parties, etc.
  • Memberships: e.g., clubs and subscriptions
  • Charitable donations: e.g., church, alma maters, community, etc.
  • Other expenses

THINGS TO CONSIDER

  • Leisure activities
  • Travel
  • Career goals
  • Volunteer work
  • Mental fitness
  • Physical fitness
  • Family time
  • Entertainment/friends
  • Most workers expect to work part time after retirement age (63%), rather than to continue to work full time (18%) or stop working altogether (18%).1

Related Links
 

1 Gallup, "Most Workers Expect to Keep Working After Retirement Age," www.gallup.com, June 1, 2011.

Prudential Financial is not responsible for information contained on the linked websites. The websites are provided to you for informational purposes only. The information on the linked websites has not been verified by Prudential Financial or its companies, nor does Prudential Financial make any representations as to the information’s accuracy or completeness.

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