5 retirement costs you probably haven’t budgeted for
With rising rents, power bills through the roof and the price of a weekly shop as fickle as the wind, retiring these days seems to be easier said than done.
And that’s before you consider the many hidden costs that can unbalance even the most studiously prepared retirement budget. We’ve provided a rundown of the main retirement costs you probably haven’t budgeted for. When you’re crunching the numbers in the lead-in to retirement, make sure you consider these expenses.
1. Health issues and associated costs
One of the unfortunate yet inevitable aspects of ageing is the fact that at some stage, your health costs are going to rise. Whether this comes in the form of prescription medications, hospital stays or trips to the doctor, these additional expenses should be factored into any decision about retirement, and how much you’ll need.
2. Your children’s inheritance
While your children’s inheritance might not be the first thing you’re thinking about when formulating your retirement budget, it’s something to consider. And not just as a lump sum payment. Also consider financial assistance you might provide for your children (and grandchildren) over time, like marriage, education and mortgage costs.
3. Providing for your spouse
Should the unthinkable happen it’s important for you to be confident your spouse is able to cope with the financial burden of you not being around. This is why expenses like life insurance policies are considered so important.
4. Downsizing costs
While downsizing is ultimately a decision to make life more manageable and less expensive, the initial outlay required to make this possible is an unexpected expense you should be aware of. Make sure you consider this in your retirement budget.
5. Travel and fun
Travel is one of the great joys of retirement, and finally having the time to take the trips you’ve always wanted is something every retiree should appreciate. But it’s also important that you have the money. Consider what sort of trips you want to be taking when formulating your retirement budget, and factor in money accordingly.
What else would add to the list? Let us know in the comments below.