5 Unexpected Retirement Expenses You Should Plan For

When you reach your sunset years, you might think that your 401k retirement account, other savings, and Social Security income will easily provide you with enough money to continue living the same kind of lifestyle that you enjoy now. After all, you’ve used one of the best retirement calculators to determine your expenses, so everything must be right.

It’s not quite that easy. There are hidden retirement expenses that aren’t usually factored into retirement planning calculations. Here are 5 of them.

1. Travel

It’s possible that, in your retirement years, you’ll live hundreds or even thousands of miles away from your children and grandchildren. You’ll still want to see them once in a while, so you’ll have to do some traveling.

That should be easy because you’re retired and don’t work any more, right? Not necessarily.

Remember, traveling costs money. If you want to do a lot of visiting later on in your life, those traveling expenses are going to add up. Make sure that you plan for them now when you save money in retirement or you’re going to face financial challenges later on.

2. Medical Expenses

You need to take into account two things when you’re considering medical expenses in retirement: how much additional healthcare you’ll need and the skyrocketing costs of health-related expenses.

First, keep in mind that you’ll need significantly more healthcare when you’re retired than you do now. That’s due to the standard wear and tear you’ll put on your body over the years.

Next, you need to consider how fast healthcare costs are rising. You should also look at insurance options for later on in life.

3. Major Home Repairs

Your home is going to age with you. Just as you’ll need a little more work done on your body as you get older, so will your home need additional work as it ages. Unfortunately, some of those home repairs are going to be very expensive. As you already know, houses are money pits. Make sure that your savings plan accounts for needed to handle expensive home maintenance.

4. Assistance for Children

There is nothing less certain than an economic prediction. You can listen to people on CNBC tell you how much the economy is going to grow over the next year, but the reality is that they have no idea. There are too many uncertainties.

In bad economic times that might arise, your adult children might need a little financial help. Make sure that you plan accordingly.

5. Inflation

You might think that you’ve accounted for inflation in your calculations. However, have you accounted for a wildly high inflation rate?

The fact of the matter is that you don’t know where the economy is headed. There could be a sharp recession or a massive expansion that causes prices to skyrocket. You might see some type of hyper-inflation in the future. Make sure you account for that as a “worst case” scenario.

There’s a lot to think about when you’re planning for retirement. It’s impossible to account for all the variables. However, you should consider these 5 unexpected retirement expenses as you prepare for your golden years.