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It’s not a secret that common costs of retirement include housing, bills, and medical expenses, but there are some things about retirement that not everyone plans for. Many retirees overlook, or they underestimate the amount they need to save for those expenses. Don’t forget these four line items when planning your retirement.
One important part of being a head of the family is that your kin often look to you for help. Even as a retiree, you may be looking at some of the needs of your family and you’ll want to help if possible. Planning for any family needs, like helping your kids with any due bills they are behind on, shopping for Christmas and birthdays, and buying back-to-school supplies for grandchildren are common things that retirees help the family out with. However, a fixed budget doesn’t always mean that it’s possible to continue providing that extra care after you retire, especially if you weren’t planning for it.
Medical expenses are rising quickly and as seniors prepare for their retirement, they often consider future medical costs. However, sometimes special care requires you to travel in order to receive it. Travelling can become expensive, especially if you need to travel often. When planning for medical costs, don’t assume you’re going to need money just for any expenses, but also for travel. You can rely on aid from health insurance policies and Medicare, but those won’t always help with necessary travel expenses.
Auto repairs, home repairs, and appliance malfunctions are nothing new to any senior. However, in retirement, those same recurring expenses—like replacing a timing belt, fixing or replacing the roof, or buying a new dryer—can hit you like a brick if you’re not prepared for them. It’s always better to have more money then you anticipate needing in your retirement savings so that you’re never left scrambling to find money.
Daydreaming about spending your retirement lounging around in front of the TV—or on a beach somewhere—isn’t what your whole retirement has in store for you. Eventually, that rest and relaxation will wear thin and you’ll want to find ways to spend your time. Taking up a hobby, like something you’ve always wanted to do but never found the time, is a great way to use that free time, but only if you can finance it. Whether it’s playing Bingo down at the Elk’s Lodge, painting, antique collecting, knitting, woodworking, build models, or something else entirely, you want to have enough money not just to survive, but to support your hobbies and entertainment as well.
But for some, it’s not about forgetting to save, it’s about being unable to do so. If you’re looking for additional funds to bulk up your savings account, consider selling a life insurance policy that you no longer need or want through a life settlement. May be able to recoup some of the money you’ve already paid into your life insurance policy, you’ll no longer have responsibility over premium payments, and you’ll have money on hand to invest or use now to support your retirement. Visit our calculator today to see if you qualify!