Create a retirement budget—and try it out now

You can see how far your money will go once you retire by creating a retirement budget, based on your probable income, then trying to live on it for a few months. If you discover that your money doesn't stretch far enough no matter how hard you tug, you'll probably need to make some changes.

Some of your expenses will drop when you retire; others might head in the opposite direction. You might spend less on clothing or restaurant meals, for example, than you did when you were working full-time but more on hobbies, recreation, and vacation travel. Your various sources of income will probably rise or fall as well. The worksheet below can help you look ahead—and maybe avoid some unpleasant surprises.