canstockphoto13779951Many people nearing retirement don’t have any idea how their expenses will be affected. They are looking forward to sleeping late since they will no longer have to get up early in the morning for work. Have you really thought about the expenses you’re likely going to face in your golden years?

Whether your idea of retirement includes taking a trip to the Caribbean or spending time with your grandchildren, there  are going to be expenses that you underestimated or haven’t thought about. It’s very important for you to take the time to accurately estimate your expenses if you want to enjoy a comfortable retirement. Here are a few examples:

1. Entertainment. One mistake many retirees are making is assuming their recreational expenses will remain the same. There will be some drastic changes. You should consider that while you’re working on a regular job, it takes up much of you day. There is a great chance that you’re away from home for around 10 hours a day if you include driving back and forth to work.

You will probably spend much of the day doing something other than sleeping late and watching television. Dining out, traveling, playing golf and shopping is a lot more expensive than going to work. Consider that you’re replacing a full time income with activities that will potentially cost money.

2. Household expenses. Once you retire, there’s a list of household expenses that you’ll have to pay. Hopefully, you are close to paying off your mortgage. Just because your home is paid for, you will still be responsible for the property taxes. Other monthly bills to consider are the utility bills, cable service, internet and other basic expenses.

Your utility bills are certainly going to increase in the future. It’s important to take this into consideration when you’re planning for your retirement. Remember the cost of food, gas and insurance is also on the rise.

3. Medical expenses. Ultimately, health care expenses are usually the biggest expense for many retirees. The average costs of medical expenses are currently over $220,000. Seventy percent of seniors over the age of 65 will require long-term  care in their lifetime. Keep in mind assisted living average $3,500 per month, private nursing home is approximately $8,000 per month and in home care from a home health aide cost around $50 per hour.

Depending on the option that you choose, it can get very expensive.

4. Unexpected expenses. There’s a great chance that you will have to pay for the upkeep of your home and you’ll need to get car repairs. Building an emergency fund is a great way to prepare for expenses that will pop up instead of using your credit cards.

Planning for retirement can be a challenge, especially when your income and expenses are changing. While it’s impossible to predict how much all of your expenses are going to be, you should still make preparations. You may want to spend that time with interesting and fun activities. Start planning for your retirement today. Consider the lifestyle that you would like to live and the expenses required to maintain it.

5. Miscellaneous expenses. You’ll never know what new hobbies and interests you might develop over time. Maybe golf never sounded interesting before, but you may develop friendships with those that love to play. Perhaps you will develop a love of art and would like to start collecting or visiting art galleries. Assume you will find new activities to participate on a daily or weekly basis and plan accordingly.

These are just a few things that you need to prepare for when you retire. Start making plans today to enjoy a comfortable bt-free retirement.

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