Plan on budgeting for 105% to 115% of pre-retirement spending during the first two years of retirement 

I’m 62, and it’s been almost two years since I retired. From my experience, the bottom line is that you’ll likely want to budget between 105% to 115% of what you spend annually before you retire to be comfortable. I’d describe myself as meticulous with my finances and know or track exactly what I spend each month. In the run-up to retirement, I read dozens of books and articles on financial and psychological planning for the transition. The consensus was usually “you’ll need 75 to 85% of your pre-retirement salary” to maintain the lifestyle once you pull the trigger with the reductions attributed to no longer saving and not having the work expenses (commute, lunches, clothing, etc.). I believe there is danger in that calculation as it is mixing your salary vs. spending or saving, and it is the spending you need to plan against. I rarely spent more than 50% of what I made, but I know many who spent almost 100%. While you may not have commuting and dry-cleaning costs after you retire, you do have an extra 70–80 hours (about 3 and a half days) a week of additional free time, and if you’re healthy, that’s going to cost you. My monthly expenditures are consistently 5%–15% higher than while I was working, and the offset of the work-related expenses is overshadowed by new leisure pursuits. On top of that, there is the 6%–8% inflation hit we all deal with so that surely impacts my thesis. Just sharing my experience, as the literature says, the first part of retirement is called the “go-go years,” so enjoy them and plan accordingly.