The image of retirement is one of luxury vacations, golfing with your friends 3 days a week and spending time with/and spoiling the grand children.

The reality for many is pinching pennies, limited travel and maybe dinner out once a month.

Many baby boomer's are finding the costs of their lifestyle are too much to manage in retirement.

As credit card bills start to mount, downsizing has more to do with eliminating debt and expenses. For many the first 5 years of retirement can be an eye opener!

So just how much income do you need for retirement? The best place to start is to review your current spending and create a budget.

Look over what you are spending today vs. what you expect to spend after your retire, and be honest and ruthless.

My suggestion is to work on this using your bank and credit card statements from the last year. Here a few ideas I to consider

• Car repairs/maintenance are often over looked. Remember you will need new tires for the car every 4 years, your gas consumptions can actually increase if you plan on traveling to visit family and you may need a newer car in the next 10 years. 
• If you have a benefits, your plan may change. Now that you are no longer employed you maybe responsible for premiums, your deductible may increase, and your benefits may also change. For some ... you may loose your benefits plan altogether. You will also be responsible for remitting your provincial medical plan premiums too. 
• Don't forget the cost of your pet(s). Make to include the cost of vet visits, and daycare when you plan to travel.