You may be earning a handsome income to successfully build a huge retirement corpus, but still, that may not be enough for a comfortable retirement life if you have not made a budget plan for your retirement. The right budget plan can help you live a happy retirement life despite having a moderate-sized Retirement Corpus. So, here are some important points that can help you plan the budget for your retirement.

Ascertain Your Retirement Date

When planning the retirement budget, you must first figure out the date for your retirement. Usually, people retire at 60, but depending on your income, expenses, and financial obligations, you may retire earlier or later than 60. Once you know your expected retirement age, you also know how many years you have to plan for your retirement.

Determine Expenses For Meeting Your Retirement Goals

Your retirement goals such as going on a vacation, buying a car, shopping, meeting regular expenses, buying a senior living home, etc. require a regular and lump sum fund. Depending on your expected lifestyle and financial obligations, you can determine the various expenses needed to meet your retirement goals.

How Much Emergency Fund You Would Need In Your Retirement?

After retiring, people normally depend on their retirement corpus to meet various expenses, however, they still require a separate emergency fund for financial contingencies that are not already covered in the insurance policy to avoid retirement corpus from getting disturbed.

Estimate The Total Fund Required In Your Retirement After Adding Inflation

Once you know the expected expenses on retirement and the emergency fund requirement, you need to add them all to get the expected total fund needed. Now, apply the average inflation rate to the total fund requirement to get the total expected fund requirement for your retirement.

Regularly Review Your Retirement Budget Plan

The retirement budget you have planned at an early age may need several adjustments at regular intervals because your income, expenses, and lifestyle requirements may change as you get closer to retirement. So, regularly review your retirement budget to stay closer to achieving your retirement goals.

Readjust Budget Plan After Retiring

After retirement, you should readjust your budget again according to the actual situation and plan the budget for short- and long-term financial goals depending on your health conditions and expected remaining life.

Always try to build a little bigger corpus than the expected budget for your retirement, it can help you get an extra financial cushion against various risks and overcome unexpected adverse financial situations.

The author is an independent financial journalist.