Why Retirement Planning Should Start with Spending

When most people think about retirement planning, the first question they ask is:

“How much do I need to save?”

It’s a fair question, but it’s the wrong place to start.

The smarter question is:

“How much do I need to spend to live the retirement lifestyle I want?”

Because here’s the truth: retirement planning isn’t about hitting someone else’s savings benchmark. It’s about creating a plan that reflects your lifestyle, values, and priorities.

Why Retirement Savings Benchmarks Can Mislead You

You’ve probably seen the headlines:

• “You need $1.5 million to retire comfortably.”
• “Save 10x your salary before you stop working.”
• “Withdraw 4% a year and you’ll be fine.”

These rules of thumb don’t know you.

They don’t know if you want to travel the world, help with grandkids, or stay close to home. They don’t know whether your mortgage will be paid off or if healthcare will be your biggest expense.

That’s why a personalized retirement income plan matters more than one-size-fits-all benchmarks.

A Smarter Framework: Start with Expenses

Here’s a practical way to flip the script:

1. Define your lifestyle. Write down the essentials (housing, food, healthcare) and the fun stuff (travel, golf, spoiling grandkids).
2. Compare with guaranteed income. Social Security, pensions, and annuities help cover the basics.
3. Identify the gap. Whatever’s left becomes the role of your retirement investments.

That gap, not a generic savings number, is what determines if your plan works.

Building Flexibility Into Your Retirement Plan

Another issue with savings-first planning is that it assumes your spending never changes. But real life isn’t static.

· Many retirees spend more in the early years on travel and hobbies.

· Spending often declines later, though healthcare may rise.

By knowing which expenses are “must-haves” versus “nice-to-haves,” you can build flexibility into your retirement income plan. This makes your strategy stronger and gives you more peace of mind.

The Bottom Line

Retirement planning doesn’t start with saving more, it starts with knowing how you want to live.

Once you define your lifestyle, you can build a plan for income, investments, and taxes to support it.

Because at the end of the day, retirement isn’t about the size of your account. It’s about the quality of your life.

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Thanks for reading!
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​Keeping wealth in focus,

The MY Wealth Management Team