Many retirees find that their essential expenses in retirement take up a lot of their income. Creating a budget to help get a general idea of what you’re spending is a smart decision. If you are looking for a target starting point for assessing what your expenses might be in retirement and you’re uncertain where to begin, you might consider using a rough estimate of 70% as essential and 30% as discretionary (or nonessential) spending. Of course, your actual budget will vary based on your lifestyle and personal situation.