Using the Actuarial Approach to Determine Your Total Spending Budget in Retirement

Despite being named "How Much Can I Afford to Spend In Retirement?", most of the posts on this website have focused on how much of your accumulated savings should be withdrawn each year.  While we believe using the Actuarial Approach described in this website should be an integral part of the process of determining your annual spending budget in retirement, it generally does not provide the final answer.  Other sources of retirement income, including Social Security, annuity income and expected income from employment must also be considered.  This article describes the recommended steps to determine your total annual spending budget.  The post as of June 21 of this year and the linked article also provide examples of the process and how to use the "Excluding Social Security V 2.0" spreadsheet in this website.