Whether you plan to retire at age 55 or 75, you may have to think about compromising on some things to keep from eating up all your savings soon after leaving the office. Most retirees spend less on clothing and gasoline because those are employment-related expenses. Analyze Now , offers retirement planning advice and tools. Hebeler says that he used to think the best way to estimate one's spending needs in retirement was to make out a detailed budget. He also recommends keeping aside at least a year's worth of living expenses as a contingency fund.
Insurance needs change Still, serious problems can foil even the best-laid plans.
The three major types of coverage that are most worth looking at are long-term care insurance, Medigap insurance and life insurance. Long-term care insurance helps to cover what Medicare doesn't. It's insurance for the middle class. A few Medigap policies also pay for outpatient prescriptions. Life insurance is a third option.