Top 5 Underestimated Retirement Expenses

Top 5 Underestimated Retirement Expenses Retirement Expenses We Usually Underestimate

High unemployment, declining asset values and unstable stock market of the past few years have turned retiring into a bigger challenge than ever. Many employers are changing their pension plans or eliminating them altogether, and employees are left to take care of their retirement alone, through saving more and investing more. To ensure your financial security, you should figure out very carefully what you will need in retirement. While making your plans and calculations, put aside a certain amount for the following events that usually come quite unexpected.

Home rent or maintenance

With rents tending to go up, you need to consider this fact, if you plan to rent a home when in retirement. If you plan to live in your own home, you should know that one of these days you will have to face repair bills, since your home will be aging the same way as you do. A smart way to minimize these repair bills is to put your home in resale condition before you retire. Over time you may also become physically unable and may need someone, who would help you with the chores you used to do yourself (like housekeeping, lawn mowing, snow shoveling, etc).

Medical costs

With the present situation of health care, when nobody knows what role the federal government will undertake, consider buying a private insurance policy. It will supplement the coverage gaps of the Medicare. The amount and type of this insurance should be based on the health risks you may most likely encounter.

Leisure

Though not necessarily such a major expense, yet its cost adds up over time, turning into quite an expense. Even if you don’t plan to travel a lot, such activities as socializing with other retirees in restaurants or clubs, or joining organizations with membership fee charged, are expenses to think about.

These are just some of the major and most common expenditures you may have to face. Your situation may be different and may include other expenses that need to be included into your budget plan at an early stage.

Leave a Reply