Retirement — a period that everyone looks forward to through their entire career yet poorly prepare for. No matter how much the topic may be brought up, you can be sure that there will always be those upon whom retirement ‘sneaks up’ unplanned. Many people speak of retirement but haven’t given the cost that goes into planning a comfortable one a single thought! It may be out of ignorance, fear, or the feeling of being overwhelmed. Whatever it is, we help you take a look at some of the expenses that tend to leave a pinch on your funds when you retire.
Just like housing is one of the biggest costs incurred by those who are working and earning an income, it remains one of the biggest retirement money-eaters, too! If you have not managed to free your housing during your working years for whatever reason, you will have to take a long and hard look at how much is left to pay off and whether it is sustainable. Planning your finances and cutting down expenses is always a good idea if you are living in the home you raised your kids in or in a large apartment, for example.
Oldage brings along with it numerous healthcare challenges and illness, most of the time. Healthcare is a very costly but very crucial element of well-being, but it takes away a huge part of your retirement savings. If you are struggling to afford your healthcare premiums, it is best to cut down on costs elsewhere – the absolute last resort is to cancel your coverage! There’s no escaping the effects of age, even if we do our best to be healthy, so don’t go canceling on your healthcare coverage when you can find some other way of shifting your finances to make it work!
Just because you are retired doesn’t mean you can say goodbye to most of your expenses! You still have to pay the same bills and the funds for it would be coming out of your savings. Whats more worrisome is the fact that your utility bills might be on the higher end considering the fact that you would be spending most of your time at home. Your water, indoor heating, and electricity bills can give you a bit of a surprise when it comes to the end of the month and you have to use your allocated funds from retirement to pay them off! Of course, there are ways for you to reduce your usage of both water and lights, and it would be wise for you to employ them to save both yourself as well as the planet!
What with you having so much time on your hands, you may be surprised by the amount of bandwidth you end up using in a month or your telephone bill! Keep an eye on your usage and if you are using enough, it may be smarter to take up a contract or a service that offers good deals on both talk time as well as the internet.
Speaking of extra time, you will have to find things to do in all that time you have on your hands! As a result, you may find that you are spending quite a lot of leisurely activities. If you know other retired people, friends, of course, it may be best if you come up with weekly activities to keep you all occupies so there is less of a reason to spend money on other forms of entertainment and recreation!
If you haven’t taken up good life insurance when you were young and working, then the chances are that you will decide that you should take one to leave some kind of inheritance to your survivors when you eventually die. However, taking up insurance policies when you are older and especially if you are in ill health, becomes very expensive! Of course, if you are adamant about leaving something behind, perhaps as a thank you to the family for their caregiving, for example, then it is a possibility – but you need to prepare for those quotes!
Retirement comes with its fair share of hurdles, and no doubt, there will be a lot of adjustments to be made and plenty of getting used to many new things in your lifestyle. Whether you have planned for it or not, retirement will come with surprises! Hopefully, we have helped you see something you’ve missed in your plans so that you can be a little more prepared!