There are ups and downs of retirement expenses. Below is a simple guideline to estimate how much income you will require: 

1. Consider expenses likely to increase such as: health insurance, health care, leisure and recreation, and travel and entertainment.

2. Consider expenses likely to decrease such as: taxes, work-related expenses, contributions to pension plans, housing, clothing, financially dependent children/parents, projects you can "do yourself", and miscellaneous others due to senior discounts or bargains.

3. Expenses that are likely to stay the same are:  food, utilities, auto and home insurance (unless you downsize your home or can get a discount on auto insurance because you no longer commute), gifts and contributions, and personal care.

 

Source: "Planning Your Retirement: An Investment for Your Future" Cooperative Extension, University of Wisconsin-Extension, Family Living Program.