Financial Needs At Retirement Change
If you are not ready for your financial needs to increase when you retire maybe you should delay your retirement date. Before retiring you will need enough money to last at least 30 years and for most people, that is a lot of money.
Since folks are living longer you will be living in retirement almost as long as you were working. Therefore you will need the same amount of money in retirement as you did during your working years. The problem is that your paycheck will no longer be the same.
Granted some of your financial needs will decrease but most of the changes will be increases. You will no longer be paying the costs of working such as transportation costs, meals and work clothes, uniforms and business suits. However you will be paying more for health insurance, life insurance, hobbies and entertainment. If you are lucky your food costs and real estate taxes will not decrease or increase but remain level.
In summary, you need to save a lot of money before retirement if you intend on affording retirement.