Core Insights - Retirement budgeting involves two main components: income and expenses, with income sources including Social Security, pensions, annuities, investment interest, and retirement account withdrawals [2] - The budgeting process often relies on rules of thumb, such as the 4% safe withdrawal rate and budgeting 80% of pre-retirement income [2] Income Sources - Income can be derived from various sources, including Social Security benefits, pension retirement benefits, annuity payments, investment interest, and withdrawals from retirement accounts [2] Expense Estimation - The 80% guideline suggests that retirees can estimate their expenses by multiplying their last year's salary by 80%, which typically approximates post-retirement spending needs [6][7] - Actual retirement expenses can vary significantly, ranging from 55% to 90% of pre-retirement income, depending on individual lifestyle and needs [7] Lifestyle Considerations - Envisioning retirement lifestyle expectations is crucial for determining the retirement budget, including considerations for family time, hobbies, and travel plans [4][5]