Whilst retirement is supposed to be the moonshine and roses time of your life, with not having to work and relaxing and pursuing your hobbies, there is always the stress of money being tight.
We spend our entire adult working lives saving for the day we can relax and enjoy our golden years, but there are extra costs that we don’t always think of.
- Healthcare – many of us will be fortunate enough to have free health care, but remember some treatments require co-payments.
- If you are living abroad, you might need to take out private health insurance to cover your medical costs.
- Age – as you get older, your health care needs increase. Consider that you might need full time care or need things like stair lifts or walkers. These items cost money. Will you have extra to cover these?
- Renovations – many retirees do renovations at retirement e.g. a new kitchen or replacing the roof or additions to the home. You might think it will last you for your entire retirement, but remember we are living longer, and after 20-30 years, your kitchen won’t be as new anymore or your roof might be leaking. What about replacing appliances? Appliances don’t last forever, and you might have to replace a fridge or dishwasher during retirement.
- New Car – Retirees often purchase a new car at retirement to see them through, but remember after 20 years, you might have to purchase a newer car. Do you have it in the budget?
- Don’t forget your income tax – even though you are retired, the government still wants their cut. Did you factor this into your monthly retirement budget?
- A reality is that you might have to care for older family even though you are retired e.g. a parent or aunt in their 90’s. This will cost money. *
*https://www.investopedia.com
When planning your projected retirement budget, remember to ask your adviser about adding these expenses into your retirement plan. Besides having a monthly income, it would be wise to have a separate savings account for these unforeseen rainy-day expenses that will ultimately become a reality during your retirement years. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
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