Tags: retirement | expense | medical | healthcare

7 Expenses to Remember When Planning Your Retirement

7 Expenses to Remember When Planning Your Retirement
(Dollar Photo Club)

By    |   Friday, 26 May 2017 01:52 PM

No matter how well people do when building up their savings, there are expenses to plan on for retirement. It may sound wonderful being free to do what you choose after leaving the workplace, but the money that goes out could be more than you expect.

That’s why estimating monthly expenses you face during retirement helps to keep your finances in line and allows you to enjoy the money you’ve earned from your working years. Online sites, such as Vanguard, help to calculate your expense estimates with a worksheet.

Here are seven expenses to plan on for retirement:
  1. Housing — This could make up nearly half of expenses, according to the Consumer Price Index for the elderly from the Bureau of Labor Statistics, Nancy L. Anderson reports in Forbes. Paying off mortgages near or at retirement could take away a huge part of expenses in retirement.
  2. Food — Many retirees don’t realize how much they are spending on dining out and buying groceries until they actually track the money they spend. They can look for ways to cut expenses by cooking and eating more often at home.
  3. Transportation — Theses costs might be cut during retirement because people are no longer commuting, but it depends on each person and how much traveling they need to do. With gas prices unpredictable, retirees, especially those planning on travel for enjoyment, can invest in energy-efficient vehicles.
  4. Health care — People may qualify for Medicare after age 65, but they still need to consider out-of-pocket medical expenses or premiums established for Medicare Part B. Planning ahead with a Health Savings Account if possible can help.
  5. Pensions and Social Security — It may seem like a blessing to start receiving money from retirement funds. However, in retirement, people often begin chipping away at their savings and are no longer making contributions. It may require taking a good look at your budget to stretch savings, according to Clark.com.
  6. Entertainment and hobbies — During retirement, many people may want to enjoy vacationing to far-off places, golfing, upgrading the home, or getting involved with other hobbies such as collecting items and antiques. The time off could cause spending on hobbies and recreation to get out of hand, Bankrate notes. Overspending often occurs during the first year or two of retirement.
  7. Family care — Issues might arise for retirees, including taking in an adult child for a time because of financial trouble or other difficulties. Some retirees may even have to care for aging parents or in-laws because of age longevity rates in today’s world. These are factors some retirees might take into consideration.

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No matter how well people do when building up their savings, there are expenses to plan on for retirement. It may sound wonderful being free to do what you choose after leaving the workplace, but the money that goes out could be more than you expect.
retirement, expense, medical, healthcare
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2017-52-26
Friday, 26 May 2017 01:52 PM
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