Retirement Expenses to Remember
Thinking retirement? No matter how much you’ve thought about retirement already, it can be easy to overlook some of the details that will make your post-employment years run smoothly. You probably have the basics covered but be sure your plans and projections factor in everything you need for a streamlined, enjoyable transition, including these retirement expenses.
So, want to make sure you’re on track? Here are a few specifics about retirement expenses to keep in mind.
Home and living expenses
Of course, housing, food and utility bills are all regular expenses you can expect to continue paying during retirement. Take the time to come up with accurate projections for each of these (and don’t forget to factor in inflation). Also consider is it time to "downsize" that home you are living in.
Taxes in Retirement
Taxes can still be a significant expense in retirement. Consider income taxes (IRS, state, and local), property taxes and any taxes related to your investments.
Health care is one of the biggest expenses to expect in retirement. Medicare premiums and out-of-pocket payments are important budget line items. Make sure you obtain a Medicare secondary coverage plan to help protect yourself from those out-of-pocket costs.
As we grow older, long-term care might become necessary. Purchasing long-term care insurance can help with the costs, but it’s wise to prepare for out-of-pocket care costs as well. Take note that long term care insurance is becoming harder to obtain, which makes this issue extremely important.
Does your budget have room for surprise expenses? An emergency fund can help you manage costs associated with unexpected events, like a major home repair, without seriously impacting your investments or your long-term financial goals.
The fun part of Retirement
Your retirement years are all about enjoying what makes you the happiest: travel, hobbies, family and friends. Setting aside money for vacations, your favorite activities and spoiling your loved ones can be the fun part of budgeting.
Additional Retirement Resources
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