Once a person retires, he will not maintain the same steady flow of income as he has while he worked. This means that more planning will have to go into preparing a budget and living within means.
During retirement, some expenses will remain the same as before retirement began. Some of these expenses include car insurance, utilities, gas and food. Additionally, money spent on charitable contributions and gifts probably will remain the same.
Upon retirement, expenses will decrease in several categories. You will no longer have to pay social security tax, and a retiree usually has a lower income tax. Work-related expenses and saving for retirement will no longer be needed either.
Some expenses will increase after retirement. Health care costs increase as a person grows older, especially if she retired before age 65. You will have to compensate for health care until you can receive medicare at age 65. Also, entertainment and leisure activities can take up a greater portion of a retiree's budget because of more leisure time.