When creating a realistic retirement budget, it is important to consider factors such as your current expenses, future expenses, healthcare costs, inflation, expected income from pensions and Social Security, as well as any additional sources of income such as part-time work or rental income.

To estimate your retirement expenses, start by tracking your current expenses and then adjusting for changes such as lower commuting costs, increased healthcare expenses, and potentially higher leisure and travel expenses. Consider factors like housing, transportation, healthcare, food, entertainment, and any other expenses that are important to you.

To account for inflation in your retirement budget, it is recommended to include an inflation rate when estimating your future expenses. This will help ensure that your budget remains realistic and sustainable over the long term as the cost of living increases.

Social Security can play a significant role in your retirement budget, providing a source of guaranteed income that can help cover your basic expenses. It is important to understand how much you can expect to receive from Social Security and factor this into your overall retirement plan.

Working part-time during retirement can be a good way to supplement your income and stay active and engaged. However, it is important to consider how this additional income may impact your taxes, Social Security benefits, and overall retirement plan.