While many people think of retirement as a time in their lives when they’ll no longer have to worry about working to pay the bills, the truth is that it isn’t quite that simple. The vast majority of people still have bills to pay during their golden years, which means that you’ll need to plan ahead. Check out these common retirement expenses to ensure that you’re preparing thoroughly for your future.
Housing and Maintenance
Regardless of whether you’ve stopped working or not, you’ll still need a place to live throughout your retirement. Even if you downsize to a smaller home, housing will still account for a significant portion of your monthly expenses. In addition to regular monthly payments, you’ll also need to budget for the inevitable repairs and replacements that are bound to come up over the years.
Long Term Care
While no one likes to dwell on the topic, medical care becomes a greater concern when you get older. As bodies age, you become more susceptible to health problems, and going without health care as a senior isn’t a viable option.
Many people are surprised to learn that programs such as Medicare require monthly fees, deductibles and copays that can quickly add up. Unfortunately, many seniors who can’t afford their medical bills have to cut costs in other areas if they can no longer work, and many wind up in lower-end nursing homes.
Conditions in lower-end nursing homes can, unfortunately, be extremely poor. With that in mind, you’ll want to plan financially for good health care and look into long-term care insurance. In fact, most sources will recommend that you apply for long-term care insurance when you’re no more than 60 years in age.
Travel and Recreation
Going on a trip or two is usually at the forefront of new retirees’ minds. After all, once you work hard and save up for your retirement, you want to be able to enjoy it. You can plan ahead by selecting your destination ahead of time and budgeting for what it will take to get there and have a good time.
Another good thing to keep in mind is that travel rates and other expenses change over the years, so don’t forget to check in every now and then to make sure your budget still holds up. Last, but not least, don’t forget to budget for hobbies and other recreational activities.
Many people spend decades putting in hours of hard work so that they can retire. However, as you look forward to your retirement, don’t forget to factor in common expenses that will persist even when you aren’t working anymore, such as housing costs, increased health care and fun things, like travel and hobbies.
A big step toward preparing well for your retirement is getting out of debt and repairing your credit. Contact us today to see how we can help!