Will $2,700 a Month Be Enough for My Retirement Adventures?

A Reddit user is trying to determine if the “spare” money he will have each month is going to be enough for him to enjoy his retirement in the way that he wants.

The poster explained that he’s got enough money saved to cover his expenses in retirement — and to have $2,700 per month left over after covering the basics. So, he wants to know if that will be enough to travel and have adventures in retirement or if the money will go faster than he thinks and he’ll be left wishing he’d stepped up his savings and grown his nest egg more before leaving work for good.

How much is enough of a cushion in retirement?

Obviously, before you retire, you must make 100% sure that you have enough money to cover the essentials, including medical care, housing, transportation, and other basic costs of living. You need to make certain that you can pay these bills at a safe withdrawal rate, and you should research your costs carefully, as you don’t want to end up being surprised by how expensive coinsurance costs and supplementary insurance are when you’re covered by Medicare.

Beyond paying for the basics, though, you also want extra money to do things you enjoy — as this Reddit poster is well aware. The specific amount you are going to need is going to vary a lot depending on what your hobbies and goals are, though. If you want to just stay home and garden, then having an extra $2,700 for “fun” is going to be plenty. However, if you want to take long trips across Europe or dine in every fancy restaurant in America, then this won’t even scratch the surface of the amount you’re going to require each month. 

You can research the costs of the things you want to do to get an idea of the money you’ll need. You can also think about whether you want to maintain or upgrade your current lifestyle. If you’re hoping to spend as you always have, then you’ll ned your retirement funds to replace your income. If you want to spend much more, you’ll need a nest egg big enough to give you a higher monthly take-home income than your job did — which means you’ll likely need a whole lot of savings.

Working with a financial professional can help you decide how much income you need

If you want to truly be certain that your needs will be met as a retiree, the best way to do that is to get professional financial advice. An advisor can help you look at your income sources, investments, planned expenses, and the likely costs of your future hobbies and activities. Based on a complete assessment of what you want your retirement to look like, you and your advisor can make a clear decision about how much money you’ll need and whether you’ll have enough of it.

Your financial advisor can also help you consider issues you may overlook. So, for example, while you may be focusing on whether an extra $2,700 a month for discretionary spending will be enough to fund your fishing trips, your advisor can remind you about things like making sure you can cover the costs of long-term care.

You don’t want to run short of money in retirement, nor do you want your retirement to fall short of your expectations because you didn’t save enough. So, get the help you need to make the best and most informed choice about just how big your nest egg must be. You won’t regret it. 

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