Peter Dunn, Special to USA TODAY Published 6:00 a.m. ET Nov. 8, 2019 | Updated 1:37 p.m. ET Nov. 8, 2019

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Dear Pete,

I just retired at 60.I am a single, head-of-household male with no children.When I retired, my annual salary was about $120,000.I have had my mortgage paid off for about fouryears and have no monthly debt load.I have approximately $1.7 millionin investable assets.

The job I left offered no real pension once I retired.Even though I have taken a part-time job (sixmonths per year, very flexible consulting work ), I am still concerned about outliving my savings.Am I nuts to be concerned? Dean

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Pete the Planner: I never tell a person not to worry, whether they should be worried or not.Were all wired differently. Instead, Im going to use our time together to illuminate apathto successand to help you identify some circumstances that could upendyour plans.

Im concerned youdidnt mention your current income. In fact, Ive convinced myself you dont know what it is. If thats the case, thats a problem. Sure, you likely make avariable level of income from your consulting gig, but how much is that and how does it set your lifestyle? If you make less, do you spend less?Or do you supplement an arbitrary amount of income with an arbitrary withdrawal from your nest egg?

Yournest egg, as youve acknowledged, is not a bottomless bowl of M&Ms grandma setsoutaround the holidays. Your dollars are finite. And if youwithdraw themindiscriminately, your fear of depletion is warranted.

Whether you like it or not, you need a budget.You must determine exactly how much all of your monthly obligations cost you.(Photo: Getty Images)

I can only assume you lived on your $120,000 salary and that standard of living has continued into your new retirement. You paid off your homeand your debt beforeretirement, which is fantastic. However, that doesnt necessarily mean you then setaside the money that previously satisfied those debts as savings on a monthly basis. If you didnt, then you increased your lifestyle heading intoretirement, which is common, but not great.

In fact, paying off major debts just before retirement can be incredibly dangerousbecauseof the risk of increased discretionary income increasing your lifestyle, heading toward a period of time (retirement) in which your available income is likely to decrease.

Additionally, if at retirement you becamesolelyresponsible for your health insurance premiums, then yourmonthly obligations increased the moment your income theoretically decreased. Assuming fullresponsibilityforinsurancepremiums for the first time in a long time can shock the system, and the wallet.

Whether you like it or not, you need a budget.

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You must determine exactly how much all of your monthly obligations cost you. Once youvefound this number, you have to ask yourself a very vital question Isthis sustainable? Ive convinced myself you dont know the number, and in turn, cant possibly confirmitsviability.

Forinstance, if you spend $6,500 per month consistently, then you must assign income to handle those expenses every month. If you simply spendwhatever feelsright, youll find yourself broke in a decade.

The importance of homing inon your true living expenses isespecially practical as you approach the age in which youll activate your SocialSecurity retirement benefits. Its not uncommon for a person whos been retired for a few years tounintentionally increasetheir lifestyle once Social Security income kicksin. This generallyhappens when a retireeoperates without a budget.

(Photo: Getty Images)

Look, I fully understand how unappealing budgeting is,especially once youve worked so long and hard to provide yourself an adequate retirement. But itsbecause youve worked so long and hard that you oweyourself the benefits budgeting provides.

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Even $1.7 million can disappear in arelatively short period of time if you refuse to budget. To replicate the lifestyle ($120,000 annually) youve just left behind in the workplace,youd need to withdraw 7% ofyour nest egg on an annual basis. That is not a sustainable plan. The more consulting income you earn, the less youll have to withdraw.

You also need to take the time to think through how your consulting income will wane. Will it gradually decrease over time as you purposefully put in fewer hours? Or will your income come to a screeching halt, whether it's voluntary or placed upon you. Too often, retirees who are working part time wrongly assume they alonedictate the continued viability of their part-time income strategy.

Thepiecesof a successful retirement are all there for you. Just be sure toassemblethemcorrectly.

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Pete the Planner: Could a retiree outlive his savings even with a part-time job? Possibly. - USA TODAY