Many retirement expenses, such as housing and food, are easy to project and plan for. But there are often overlooked costs that could derail your retirement plan unless you factor them in as you save for the future.
Here are five you may want to consider.
Medical costs. Most people consider Medicare when planning for retirement. But what about health care expenses that Medicare doesn't cover, such as dental, vision and hearing care needs; prescription drugs; and most long-term care costs? Even with supplemental insurance, out-of-pocket expenses and copayments can add up.
Home and auto repairs. Just as our health tends to decline as we get older, houses and cars typically require more maintenance as they age, too. You may also need to hire someone to help with lawn care, gutter cleaning, snow removal and other chores in the future.
Rising costs. Don't forget about inflation when determining how much you'll need for retirement. An amount that seems like more than enough to cover the cost of living today may not go as far by the time you stop working.
Family support. Many retirees find themselves providing financial help to family members, including aging parents, adult children, grandchildren and siblings. Add this possibility to your retirement planning, even if the need to help loved ones financially doesn't seem likely today.
Long-term care. Many couples budget for retirement with the assumption that they will both be living in the same place. But what happens if one of you requires medical care in an assisted-living or nursing-home facility? You may find yourself paying for all or part of that care on top of your everyday living expenses.
Of course, life is unpredictable and you never know what's going to happen next. That's why it's crucial to plan and budget for the unexpected. By building a savings cushion into your retirement plan, you can help ensure you have what you need for the future. To learn how we can help, call your local Regional Office representative.