I am no where near retirement age, but I love reading articles about how to prepare for it. I feel that it’s never too early to plan for retirement, especially if you have an idea in your head about the lifestyle you want. If you want to travel and play golf all day, you need to determine how much money you’ll need to save in order to support those activities. If you find that you are barely able to make ends meet with your employment income, imagine what it will be like if you’re living off of Social Security and your 401k withdrawals. This can be a big hit to your budget.
I recently read a Kiplinger article that outlined 5 unexpected, yet costly retirement expenses. Thinking about these things in advance can help you plan for retirement, or at least ensure that you will not get caught off guard. I recommend reading the entire article, but I thought I would touch on a few of the items that I found most interesting.
One unexpected event may not seem like a bad thing at first glance. We work hard to stay healthy so that we can live a long life, but if you think about it, living longer is going to cost you more. When you prepare to save enough for retirement, determining how many years that money has to last is very important. Saving more for retirement may not be an option, so many people will either have to work longer or figure out how to spend less in their golden years.
As we get older, we can expect to have more healthcare needs. Without a continued income, it can get very expensive. Prescription drug costs alone can get out of hand for many people. Health insurance premiums increase as we get older and the quantity of necessary medical procedures is much greater. We tend to think of how much money we’ll need in retirement to pay our living expenses, but it’s harder to anticipate medical expenses for ailments we don’t even have yet.
The above two factors may be unexpected, however, the effects may be minimized with advance planning. But what do you do when you’re retired and your adult children turn to you for support? This is something that seems to be occurring more and more often. Whether your kids need a roof over their head, a loan, or help with expenses for the grandkids, most retirees aren’t financially prepared to give continued support to their children. I think that many have even secretly hoped that their kids would be in a position to help support them, rather than the other way around. Many couples are faced with kicking their kids out of the nest for a second time.
Retirement will bring many challenges, but perhaps with a little advanced planning we can ease the transition, and maybe even enjoy ourselves.
Submitted by:
Bankruptcy Attorney
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