One of the major factors that will determine how enjoyable your retirement will be is how much you planned for it. There are, of course, many variables that you cannot control (say, how much you will be earning from returns on your investments). However, there are also some you can.

Perhaps the most important thing that you can control is your post-retirement spending habits. Understanding your financial situation as a retiree won’t just help take away the stress of knowing what you can and cannot afford, but will also allude to when you can consider retirement in the first place.

To get an idea of what you’ll need to make the most out of your golden years, consider saving up enough money to account for the average annual costs you can expect to see as a retiree.

Housing: $15,864

A recent report from the Bureau of Labor Statistics shows that housing is the largest expense among American retirees—even accounting for those with no mortgage payments. This is likely due to the regularity (and costliness) of household-related expenses, like state property taxes, homeowners insurance, utilities, and repairs that do not go away even after your mortgage does. It’s generally advised to factor at least 1% of your home’s total value into your budget for yearly maintenance. You never know what alterations you might need to make your house more accessible in your old age!

Transportation: $6,804

The cost of transportation was the second largest expense among retirees in the U.S. On average, individuals at the age of 65 and older spend approximately a third less than the average household on transportation in the U.S. Without the need to make your daily commute to work, you’ll save big overall. Nonetheless, the regular maintenance and upkeep of automobile ownership (which includes gas, car insurance, repairs, etc.) can put strain on a retiree’s budget—especially if you plan to buy a new one.

Health Care: $5,988

Health care can be a volatile expense as you age, especially in lieu of increased need and current market conditions that have catapulted insurance premiums. You can expect to pay around $6,000 per year on average for health care, but even more should you have the misfortune of developing a medical condition in need of attention. Some reports even suggest setting aside a whopping $280,000 to cover your total health care expenses throughout the duration of your retirement.

Food: $5,796

Say hello to senior discounts! Your grocery bill and restaurant budget is one area where you can expect to see a decline in spending. Albeit, food remains a constant expense whose amount can increase quickly if you fancy frequent social gatherings with your family or friends. That said, with the extra time available to you in your new life as a retiree, it might be a great opportunity to polish off your culinary skills!

Miscellaneous: $3,000+

Miscellaneous costs include any unexpected or infrequent costs that may amount to little when factored individually, but a lot when factored aggregately. Therefore, it’s necessary to make sure they’re accounted for. Some of these expenses—like charitable donations to a nonprofit organization—are of benevolent intention and are encouraged in your retired life. However, other expenses—like bank fees—are entirely unnecessary. According to Bank Fee Finder, Americans spend an average of $329 in bank fees every year (many of which go unseen by the account holder). However, you can eliminate this cost entirely by switching to a no fee bank alternative. But that’s just one example—and another reason why keeping track of what you’re paying for can help you save big in your retired life.

Entertainment: $2,364

One of the best parts of retirement is saying goodbye to the hustle and bustle and living your life how you want to! But since you probably won’t be staying indoors all the time, you’ll need to factor entertainment costs into your budget. You probably can take a good guess at how much you’re currently spending on hobbies, but if you’re ever wanted to do anything more grandiose—like travel the world or buy a motor home—you’ll have to budget accordingly. For a full list of exciting things you can look forward to when you retire, click here.

This informative food for thought post was contributed to Leisure Freak by Chime