I'm 64 With $1.2 Million in a 401(k) and $2,800 Social Security. How Should I Plan My Retirement Budget?

Income and Expenses - Retirement income and expenses are crucial components of a retirement budget, and decisions regarding either can significantly impact the budget's accuracy and reliability [2] - Estimating expenses can be done using averages for typical retirees or by considering specific situations, including categories like housing, healthcare, and taxes [3] Retirement Income - A $2,800 Social Security benefit is expected to be reliable, despite potential cuts of about 20% after 2035, and benefits are indexed to a cost-of-living benchmark for inflation protection [4] - Delaying Social Security benefits can increase the monthly amount, with a 20% reduction if claimed at age 64 instead of the full retirement age of 67, and a 24% increase if claimed at age 70 [5] - The 4% withdrawal guideline from a $1.2 million 401(k) suggests an initial withdrawal of $48,000 in the first year of retirement, adjusted annually for inflation [6] - Combining the $33,600 Social Security benefit with the $48,000 withdrawal results in a total income of $81,600, though actual income may vary due to investment strategies, market volatility, taxes, and fees [7]