© George Fairbairn/Shutterstock.com
No. 4: Create a post-retirement budget
Many people believe their post-retirement expenses will be significantly lower than their pre-retirement expenses, but that isn't usually the case, says Vollmer. For example, while you won't have to dress up for work, you will likely be traveling more. And while you probably won't go out to lunch with former colleagues or clients, you may go out to dinner more often.
By taking a close look at your current and expected future expenses, you can be better prepared to match your spending with your post-retirement income. "Determine how much you will need for general expenses -- mortgage, utilities, food -- as well as medical expenses and insurance," says Tayne.
Keep detailed track of what you spend before retirement because that will give you an idea of the expenses that aren't likely to change in retirement, such as food, car repairs and home maintenance. Also, remember to have money set aside for bigger expenses that come up infrequently, such as the replacement of a roof or major appliances.
ADVISER SEARCH: Need help planning for retirement? Find a certified financial planner at Bankrate today.