6 Unexpected Retirement ExpensesJohn Rampton
This magic number will change, especially since you can’t “know” how many years you’ll be living as a retiree (you can only guess). While many financial advisors recommend you have enough saved to “maintain your standard of living”, what isn’t discussed is the unexpected retirement expenses you may face.
You might not “need” to keep up with the Joneses’ as much as you do right now, and you can go without upgrading your luxury car lease every two years, but retirement itself has a slew of expenses you’re not dealing with in the now.
For starters, you might want or need to relocate completely to one of Forbes best retirement spots, adding brand new housing expenses into the mix. Paying off your mortgage before you retire is great, but there’s no telling what the housing market might do.
Here are a few expenses to keep in mind when you’re planning your real retirement finances:
The older you get, your healthcare premiums will be higher and you really need high quality healthcare as a retiree. Don’t depend on Medicare, because Natural News and other media outlets have been warning for years that the system is bankrupt. You’ll likely need to supplement Medicare with private insurance.
If you or your partner needs an in-home nurse, even part-time, that can exhaust your retirement account quickly. This isn’t covered fully with most insurance policies, and even if it were, that insurance policy premium would quickly make up the price difference. Fantastic health before retirement gives you a better foundation for elderly health, but it guarantees nothing.
Prescriptions can be incredibly costly, and some retirees who planned poorly have to choose between getting their medication and eating. That is a decision no one should have to make. Read the fine print of your insurance policy and make sure the majority of prescription drug prices are covered. Otherwise, you’ll be in for a nasty surprise when you suddenly have to take cholesterol medication for the rest of your life.[Tweet “6 Unexpected Retirement Expenses You Need to Consider Now! #entrepreneur”]
Moving to a Nursing Facility
Whether it’s a laid back retirement community or a more care-minded nursing facility, this is a fantastic way to enjoy home cleaning services, medical care just a few steps away, and of course a lively social life in your golden years. However, the cost of these various communities and facilities can vary greatly. Selling your home won’t necessarily cover it, and you might find yourself basically having to pay rent all over again.
Nobody likes to think about it, but it’s possible that you or your partner might need hospice care at some point. Like nursing facilities or retirement communities, these costs vary greatly depending on what’s available and where it’s located. However, 12 months of hospice care should be built in to your retirement planning, just in case.
From cataract surgeries to hip replacements, the elderly simply have more necessary surgeries than other demographics. This is another time when you need to read the fine print of your medical coverage and made sure you have reasonable deductibles as well as surgical coverage. If not, some surgeries can bankrupt patients.
Retiring isn’t easy, which is probably why more and more Americans are opting out of it completely (hello, late entrepreneurial venture!). However, making sure you can care for yourself or your partner in your later years is crucial to peace of mind and financial well-being.