Many people have calculated how much money they think they will need in retirement. However, there are some expenses which are often not figured in because they are variable and not fixed. What are they?
Enterprises TV staff recently looked into a report which reviews the top expenses Americans have in retirement.
Topping the list is healthcare. It is no surprise that this cost will rise as people age. Medical and other health issues will crop up the older the population becomes, therefore, triggering rising expenses. It is also noted that while other expenses went down in retirement, healthcare went up. Expect premiums and out—of-pocket expenses to go up.
Housing costs may go up also. Even if someone who is retired chooses to downsize their living arrangements and lifestyle, the cost of doing so can be heavy. This is more so if the retired person wishes to move into a senior retirement home or community or needs assisted living services. Annual costs for these facilities are not cheap, and if meals and medical care are needed, the cost can go up.
Utilities will more than likely go up in retirement. This is mainly due to inflation and the cost of retail energy prices. The current projections have the cost of electricity going up by 18 percent by 2040.
It can be a real challenge to calculate and determine how much money we’ll need during retirement. Monthly living expenses are likely to change over time, and go up. The Enterprises TV show suggests working with a trusted financial adviser to determine a reasonable plan for the future.