Retirement may mean you’re not working anymore, but that also means you probably have less money coming in and may be on a fixed income. Hopefully you’ve saved up and invested enough money to more than cover your expenses so you can relax and enjoy your golden years. Before you get there, it’s important to have an understanding of what to expect regarding your expenses.
Housing
Housing is one of those expenses that never really goes away for anyone, and tends to be the biggest ticket item for everyone. Seniors are no exception. Even if you’ve already paid off your mortgage, there are still plenty of other expenses. Property taxes, insurance, utilities, and basic maintenance and repairs can all add up to quite the bill. Of course, it can be difficult to foresee what sorts of repairs you’ll need, which, according to American Home Shield, can make knowing how to budget for repairs and maintenance tricky.
Healthcare
Healthcare is another major expense retirees need to plan for. As people age and bodies and minds run a little slower, healthcare becomes both more necessary and often more expensive. Common ailments such as hearing loss can run a pretty high bill. According to Audien Hearing, hearing aids can be a major expense for seniors as they usually cost thousands of dollars. Your family’s medical history might give you a glimpse of some of what you can expect as you age, which may help you plan for healthcare expenses. Once you are over 65 you qualify for Medicare health insurance. This can help cover some of your healthcare expenses and make them more affordable.
Food and Transportation
On average, according to Showbiz Cheatsheet, seniors spend a little under $1,500 a month on just food and transportation. This can vary widely, of course. If you eat out a lot or entertain friends and family often, your food bill is likely to be quite high. Conversely, if you are just cooking for you and maybe one or two other people, you are likely to spend much less on food. Transportation is similar. The price tag of your car can vary widely from a high end luxury vehicle to a modest used car. And regardless of the vehicle, you’ll still have maintenance costs, insurance, yearly registration, and gasoline to pay for. While the cost of these can vary, the need to pay for them doesn’t, and it adds up fast.
Retirement can be a wonderful opportunity to slow down and spend more time with family and friends. Along with that opportunity comes some big ticket expenses though. You’ll still need to pay for housing and healthcare, as well as food and transportation. Budget carefully so all your necessary expenses will be covered and you’ll still have funds left over to have some fun.
If you want help planning your budget for retirement, contact us to schedule an appointment!
