Daily Living Expenses * Daily living expenses are those costs that pertain to everyday life such as groceries, auto insurance, gas, mortgage or rent, utilities, cell phone, Internet and cable. To figure out how much a person needs after retiring, he can first examine how much he spends as a worker. Different factors contribute to the need to adjust it up or down. Children who move out of the house reduce the expense. However, if he and his wife will be spending more time at home and eating more meals there, then the expense may rise. Be realistic in the adjustment.
Medical and Long-term Care * One expense that steadily increases in need and cost is medical and long-term care. As a person ages, he typically requires more visits to the doctor and more prescription medication. In the later years of his retirement, he may find a need for daily nursing care or living in a nursing home. Insurance planning can help to determine these costs and how to reduce the retiree's financial liability for each.

Leisure Activities * Determining what the individual wants to do during retirement helps to assess how much he needs in order to afford it. Some people prefer to spend their days deep sea fishing. For this, the expense of the boat, gas, fishing equipment, freezer space and other items are important to consider. Gardening and reading, however, are much less expensive. This is often difficult to plan, but is very important.
Big Ticket Purchases * During retirement an individual will likely need at least one new car. He might wish to purchase a vacation home at the beach to stay for the summer. Retirees frequently like to buy boats or motorcycles to spend their days on. These expenses are often quite large and the person needs to assign dollar limits to each.
Travel
* Usually, a person figures out a certain number of trips that he wants to take over the span of his retirement. If he wants to take