With the increasing rental prices, surging electricity bills, and the rising prices of your weekly groceries, retiring nowadays is tougher than ever.
While preparation is key, balancing the budget for your monthly expenses proves to be harder because of the hidden costs that you didn’t save up for in your younger years. In this post, we’ll help you consider padding your budget to cover the main retirement costs that you probably failed to budget for.
- Health care and associated costs
One of the inevitable instances of aging is sickness. Sometimes, no matter how we take good care of ourselves, we tend to get sick. Even if you have health and life insurance, it’ good to factor in an additional budget for necessities that are not covered by your insurance such as prescription drugs, hospital stays, transportation costs, etc.
- Your child’s inheritance
Financial assistance once you’ve passed away is probably not a priority when you are planning for retirement, but it’s something to consider. With the rising real estate and housing costs for example, if you can set aside a small portion of your retirement fund, you will have peace of mind that your children will have a permanent home or better financial stability.
- Leaving your spouse worry-free
When the unthinkable happens, avoid leaving your spouse the financial burden. This is one of the top reasons why life insurances are so important. Talk to different insurance companies early on to look for the best option that will fit your retirement preferences.
- Travel and recreation
Travel is one of the things you look forward to when you hit retirement. It is one of the greatest joys of life and you should make the most out of your golden years to go on the trips you’ve always dreamed of. Make sure that you budget for travel and recreation too.
How do you budget for retirement? Are there other things that you think we should include in this list?