An accomplished financial advisor who draws upon more than two decades of professional experience, Darrach Bourke has specialized in portfolio management and investment analysis for high-net-worth investors. A financial advisor and managing director with Emerson Equity LLC, Darrach Bourke advises on a wide range of retirement plans.

Retirement planning is vital for anyone who desires a comfortable, secure, and enjoyable retirement. Building a financial cushion during retirement begins with evaluating retirement goals and selecting the best approaches to help finance future requirements. Determining retirement needs and evaluating expenses is one of the most important parts of developing a retirement plan. As an individual comes closer to retirement, they need to have a good idea of what their actual spending needs will be. Reviewing current expenses and determining how they may change during retirement is a good start. Also, checking how current retirees are spending their money can give the person a good idea of their projected spending. The most expensive categories for retirees are often housing, health care, transportation, and food.

A realistic expectation regarding post-retirement spending habits helps individuals define the appropriate size of their retirement portfolio. The belief that a retiree can spend around 70 to 80 percent of what they had pre-retirement can be inaccurate, especially if one has to incur expenses such as completing a mortgage or deal with unforeseen medical expenses. In addition, some new retirees often spend a lot of money on travel and other activities they didn’t have time for when still working. Experts often advise a higher post-retirement to pre-retirement spending ratio of close to 100 percent in order to have sufficient savings for retirement, especially considering the rising cost of living, including healthcare expenses. Having a good estimate of retirement expenses will ultimately affect how much an individual can withdraw every year.