Core Insights - Current spending habits can predict retirement financial needs, emphasizing the importance of planning based on present expenses [1][2] Group 1: Retirement Planning - To create a retirement budget, individuals should accurately track monthly spending, excluding work-related expenses and including retirement-related costs like travel and healthcare [3] - A general guideline suggests needing 25 times the current annual expenses in investments to retire comfortably, with a Safe Withdrawal Rate (SWR) of 4% [3][4] - Adjusting current spending for inflation is crucial, with a recommended rate of 3% for planning purposes, particularly for healthcare and lifestyle expenses [5] Group 2: Spending Patterns in Retirement - Spending patterns in retirement typically follow a "retirement smile," where initial spending is higher due to fulfilling bucket list items, tapering off, and then increasing again due to long-term care costs [6] - Certain expenses are expected to decrease in retirement, such as work-related costs, mortgage payments, and child expenses, while travel, healthcare, and leisure spending are likely to rise [7]