Monday, March 4, 2019

Budgeting for Seniors: 4 Common Post-Retirement Expenses



Calculating the costs of retirement isn't always as straightforward as it seems. Certainly you will want to determine your monthly medical costs, mortgage or rent costs, food budget, transportation costs, and more. But there are also several unexpected costs that can come up during retirement. 

Since most people live on a fixed income during this time of their lives, the unexpected costs can eat away at your nest egg. As a result, it is vital to be prepared for the expenses of life as a retiree. Here are four common post-retirement expenses.

Home Repairs


As a retiree, it's possible you may have lived in your home for your entire adult life. After a while, homes can suffer and deteriorate because of inclement weather, accidents, and general wear and tear. 


Other times, structural incidences can occur without your knowledge such as a pipe bursting, mold infestation, and termite damage and turn into a serious issue. Lawn care, snow removal, and basic home maintenance can also pile up. As you get older, it can become much more difficult to do chores if you have arthritis or persistent pain. 

If you find yourself unwilling or unable to keep up with these tasks, you may want to consider downsizing to a condo, smaller house, or a retirement community to make these maintenance tasks and issues nonexistent or at least less stressful.

Travel


Retirement is a good time to see the world since you have some extra free time on your hands. It's exciting to see the world in your golden years and make new memories with those you love. 





Be sure you know what you’re getting into before committing to anything. If you’d like to see many different places or have a preference for private tours, be sure your budget can accommodate that. Be strict with your vacation budgets and always be on the lookout for deals and steals.

Healthcare


As you get older, the amount of medical expenses often goes up as health issues worsen or surface. Many medical issues are associated with age and require expensive treatments and medications. 


For example, if you fall and injure yourself, recovery is more difficult and takes longer than it did when you were younger. Plus, your bones are much more fragile when you're older, so you have to be more careful. Additionally, you may need things like general skincare help, denture repair, and vision care.

Expenses for Adult Children


Just because your kids grow up and move out doesn’t mean you won’t feel inclined to help them out financially. An adult child may get married and need help with wedding expenses or maybe even need help with purchasing basic necessities for your grandchildren if they’re down on their luck. You will probably want to help as much as you can. Be sure to be smart about your spending and saving.

Post-retirement expenses are common and unique to each senior. Now that you are aware, you can plan your budget and savings for the future you want to have.


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