While there’s a lot of talk about the importance of saving for retirement, it may help you budget for the future if you’re clear on the expenses you will or will not have during your golden years so you can plan for today
After years of hard work and constant effort, for your own financial well-being and that of your family, a quiet retirement is the least you deserve. Whether you make it is up to you. And although on this occasion we will not delve into the importance of saving, we will tell you some of the 5 expenses that you should contemplate that you will have in your retirement so that you can take the pertinent preventive financial measures from this moment on, regardless of your age or the time you have left to retire.
1. The best health insurance for you
Many people believe that Medicare is free and covers any health expense. That’s not entirely true. While some people may qualify for free health insurance through Medicare starting at age 65, they are referring to type A, which only covers hospital expenses, that is, if you have an emergency for which you must be admitted.
If your health conditions require additional coverage for things like doctor’s visits and prescription drugs, you will have to pay a monthly premium for Medicare Type B and Type D.
You may also want additional coverage in the form of long-term care insurance, which you can purchase through an independent insurance company. Let’s just say that Medicare is not a one-size-fits-all shoe-in.
2. Estate settlement planning
Almost in order of importance, after your health care expenses, you should be aware that no one’s life is bought, so it is essential that you get your post-death affairs in order, such as writing a will and probate, to avoid headaches for your family members and heirs (which, as much as it hurts, may not be the same people).
Most retirees will take the step of drafting a will or trust to describe how they want their assets to be distributed, but the more seasoned ones go further: they prepay their funeral expenses. It’s not easy to think about these kinds of expenses while you’re still alive, however, if you truly love your family and want to spare them from further grief at your loss, this kind of planning will help them cope with such a complicated situation with greater peace of mind, even if you don’t think you have much to leave behind.
3. A medication organizer
Returning to the point of health, and after taking out the right health insurance for you and having finalized your estate settlement, if you want to live as long as possible to enjoy your retirement, it is essential that you be organized with your medical treatment regimen. Even if you are in good health, it never hurts to get a medication organizer to help you stay on schedule with taking your pills and other medications.
According to Merck, nearly 90% of seniors take at least one prescription medication, nearly 80% take two, and 36% regularly take five or more.
Spending on medications can be high, depending on your health and the treatments you manage, for example, such as the high costs of frequent insulin purchases for diabetics. If you don’t want that money to go down the drain, you’ll want to be disciplined with your medications.
4. Spending on hobbies
Every working person in America deserves a retirement filled with travel and hobbies that make life enjoyable. Of course, deserving doesn’t necessarily mean that everyone gets it or can afford it. However, among the expenses you should consider, beyond the necessary ones mentioned above, are those for fun.
Although traveling is the typical image of a full retirement, let’s be honest, not many will be able to sustain that life with their savings. But no one wants (or deserves) a boring retirement, so you should consider spending on hobbies. Maybe a few trips to the outskirts of your city from time to time, a few restaurants you’ve never been to before or just a trip to the movies to see the latest flick, all are an expense you should keep in mind that you will have during your retirement and, if you plan for them, they won’t destroy your pocketbook.
5. Home Entertainment
Even if you have enough savings to take regular trips during your retirement, especially if you don’t, you will spend most of your time at home, so it would be a good idea to plan some expenses in advance that will allow you to have entertainment at home. More than an expense, see it as an investment, because all the time you spend entertaining at home will be money saved on outings. Nowadays, you have entertainment platforms that will help you spend hours of fun without leaving home.