Best time to think about retirement is when you are working. It is not too late to plan. Sooner you plan for your retirement, better off you are going to be in retirement. No matter what, we all feel that we should have saved more for our retirement. Whatever the amount you saved make sure to spend it wisely. Better yet develop a budget during retirement.

List all the expenses you might need in retirement. Best place is your current monthly budget. You know some expenses such as commuting cost will go away but additional expenses will come into play. Not only your monthly expenses including healthcare, add those unexpected you might have to help with. Your kids may need support from you to buy a home or you may want to open up a college savings plan for your first grand kid. It doesn’t matter how small an item is, list them all. If you can come up with an expense budget for an entire year, it will make your retirement life much easier.

This will give you an idea how much money you need for a month. Now you can decide which retirement account to tap and how much you need to withdraw from each account.