Lifestyle Spending in Retirement

Your retirement dreams are only as strong as the lifestyle they rest upon. The key to a confident, fulfilling retirement isn’t just saving “enough money.” It’s understanding exactly what your desired lifestyle costs—both today and in the years ahead. When you define your lifestyle spending clearly, you move from hoping retirement will work out to knowing it will.  

It’s All About Lifestyle!

Our planning process always starts with your lifestyle goals. What does a typical month look like for you right now? What do you want it to look like in retirement? Answering these questions turns vague financial targets into a practical, personalized plan. The good news? You don’t need perfect precision. A solid estimate of your larger expenses is enough to get started and provide tremendous clarity.

Being Intentional with Your Time and Money

An intentional retirement doesn’t mean every hour is scheduled or that you stay busy just to stay busy. It means regularly stepping back to ensure your time and money are aligned with what matters most to you.  Just as you review your financial plan, you should periodically check in on your lifestyle goals.  Ask yourself:

• What am I enjoying most right now?

• What activities feel less important than they once did?

• Who do I want to spend more time with?

• What experiences am I still hoping to have?

• What have I been putting off that matters to me?

These answers evolve. The retirement you love at 65 may look different at 75. The retirees who thrive are those who adapt as life changes rather than sticking to a rigid plan. Retirement is not a finish line—it’s a series of chapters. Each chapter brings new opportunities, challenges, and priorities.  The goal is to keep paying attention and have the courage to adjust.

Defining What Your Lifestyle Costs

Start by examining your current spending. Break it in three simple categories:

1. Essentials  (The Non-Negotiables)  

These are the must-have expenses that don’t disappear in retirement:

• Housing (mortgage, rent, property taxes, maintenance)

• Food (groceries)

• Utilities (electricity, water, gas, internet, phone)

• Insurance (health, home, auto, life)

• Transportation (car payments, fuel, repairs, insurance)

Quick start tip:  Pull out your last two months of checking account and credit card statements.  Average your spending in these areas. These numbers tend to be relatively stable month to month. For families with children, add education costs, activities, sports, clothing, and other kid-related expenses. These often represent one of the largest line items during working years and usually change dramatically once kids are independent.

2. Wants (Living the Life You Enjoy)

These are the discretionary expenses that make life fulfilling:

• Dining out and entertainment

• Travel and vacations

• Hobbies and club memberships

• Shopping and personal care

• Gifts and charitable giving

Review recent statements and note how much these have increased recently (restaurant meals and travel costs, in particular, have risen sharply for many households).

3. Large One-Off and Annual Expenses

Big-ticket or irregular costs can quickly derail a budget if not planned for:

• Annual family vacations

• Vehicle replacements

• Home repairs or renovations

• Emergency medical out-of-pocket costs

• Wedding or family event contributions

• Major travel or bucket-list experiences

Look back at what you spent on these over the past year, then factor in your plans for the coming year. Add them up and divide by 12. 

Set that monthly amount aside in a dedicated savings account so the money is ready when needed.

Total It Up and Create Your Lifestyle Number

Add your Essentials + Wants + One-Off/Annual (monthly portion). 

This gives you a realistic monthly lifestyle spending target. This number becomes the foundation of your retirement plan. It tells you how much income you’ll need from savings, pensions, Social Security, or part-time work to maintain the life you want.

Review and Revise Regularly

Life changes quickly. Prices rise. Priorities shift. Children grow up.  Health situations evolve.  That’s why regular review is essential.

• Review your actual spending monthly (or at least every other month)

• Adjust categories as needed

• Add new expenses or remove ones that no longer apply

• Stay flexible and honest with yourself

This ongoing process keeps your plan relevant and reduces financial stress.

Have Questions Regarding Retirement?   Are you ready to Get Clear on Your Lifestyle Spending?

We’ve created a simple Lifestyle Living Expense Worksheet to help you organize all of this in one place. It walks you through the categories, makes estimating easier, and gives you a clear picture of both your current and future lifestyle costs.  

Send an email to request the free worksheet: Email    jstanton@stantongroupwp.com

Or,  schedule a short Introductory call with me here :   John's Calendar

For over 20 years,    John and his team have been helping successful individuals and their families,  plan,  preserve, protect, and pass on their hard earned wealth.  

​Based in Naperville, Illinois, John serves clients in Naperville, Plainfield, Darien,  Aurora, Geneva, St Charles, and throughout the United States.  

Learn more about John's services by visiting  https://www.stantongwp.com/team-member-01  or connecting with him on LinkedIn  https://www.linkedin.com/in/john-stanton/ .