Unexpected Expenses: Don’t Let These Derail Your Retirement Journey

When preparing for retirement, most individuals plan to save enough money to cover routine living expenses. However, it’s also important to factor in unexpected or less obvious expenses.

Here are a Few Commonly Overlooked Expenses to Consider:

1. Increased Leisure Activities – The first year of retirement can be exciting. Your time is yours—you can now spend it as you like, planning trips, dining out and enjoying new hobbies or activities. Remember to budget for these extra expenses so you can enjoy these activities on less current income.
2. Home Repairs and Remodeling – When surveyed, more than 75% of Americans 50 and older say they would like to live in their current community and preferably in their own home.¹ When you stay in your home, remember it will be aging with you. In the future, major appliances will need to be replaced, a roof may need new shingles, siding may need to be replaced, and driveways may need resealing, all of which can add up.
3. Transportation – While you may not have a daily commute, you still have places to go. Vehicles require regularly scheduled maintenance and fuel, not to mention potential car payments. Additionally, an unfortunate vehicle accident or need for a new car could result in unexpected expenses, delay in travel plans or force cutbacks elsewhere.
4. Long-Term Care – Nearly 70% of people require some kind of long-term care for an average of three years.² Often, long-term care is needed when someone has an accident, illness or chronic condition and cannot perform the basic living activities – including eating, bathing, dressing, and transferring (getting in/out of a chair or bed). While the duration and level of care vary, these costs can add up. On average, monthly nursing home care costs around $7,500 to $9,000, which is double the cost for at-home care or assisted living.³

While everyone’s retirement journey is different, unexpected expenses will inevitably pop up throughout retirement. A Jemma Financial Advisor can help you identify and prepare for any unexpected retirement expenses and find a financial solution that works best for you.

1. AARP.org. 2. LongTermCare.gov. 3. Consumer Affairs