Aw, retirement. For some, the vacation lifestyle of road-tripping, recreation and relaxing isn’t a reality they can look forward to. One big obstacle stands in their way of achieving a good retirement: money.
Isn’t that what retirement savings are for? Yes, most people set aside some money for the future, but they forget to account for unexpected costs that may come up in retirement.
Unexpected Expenses in Retirement
Wouldn’t it be helpful if you could predict the future? You would have the power to anticipate when a problem may arise, and what the cost may be. That surgery in two years is going to cost a lot—not to mention the ding on the car door you have to get fixed.
Unfortunately, we don’t have the ability to see exactly what is ahead, but we do have a general idea of what unexpected expenses you may need to pay in retirement. Take a look:
- Financial Assistance for Family Members. This could be anything from helping your parents in a nursing home or providing for your kids or grandkids in a time of need. Things that may require financial input (whether you need or want to help) include:
- Going to School
- Buying a Home or Car
- Losing a Job
- Health Problems or Emergencies
- Home Repairs/Renovation. Maybe something in the house has needed to be fixed for years, or maybe you’ve always wanted to update the kitchen. Whatever it is, take into account the cost of each project – in detail, and before you knock down any walls.
- Medical Emergencies. Some things can happen suddenly and you’ll be staring at a huge medical bill wondering how you are going to pay for it. It is prudent to set aside money not only for retirement but also for unexpected medical emergencies.
- Who wouldn’t want to get away for a couple of weeks at a time? Retirement is a great time to hit the road or hop the pond – as long as you plan your budget very carefully beforehand.
- Uncovered Medical Expenses. The majority of people think about Medicaid or Medicare when it comes to paying for medical appointments, surgeries, etc. But, there is a huge piece of the puzzle they miss: the medical expenses not covered by Medicaid. This includes costs for dental procedures, vision/hearing operations, prescribed medicine and long-term care.
How to Save Before and During Retirement
- Calculate the Cost. Are you in a place where you question if you have enough money to retire? Check out this retirement calculator to see what your financial situation looks like.
- Plan Ahead. There’s no such thing as too much planning or too much saving. It’s better to save way more than you need rather than getting to retirement and not having enough. You can start planning now – make a budget and cut extra expenses where that money could go toward retirement.
- Save Money with a Discount Dental Plan. With the costs of dental procedures being so expensive and uncovered by Medicaid, it can be tempting to simply avoid going to a dentist. But let’s think about that – if your oral hygiene goes unchecked or untreated, you could develop a major dental issue that could cost even more money to fix. Alternative to insurance, a plan from 1Dental can help you get the dental care you need to stay healthy and active at an inexpensive price. (To view our exact fee schedule, click here.) If you currently use insurance, 1Dental cannot be used alongside that coverage, but it can be used once you hit your insurance maximum. To sign up for a plan, check out our website or call us at 800-372-7615.
- Downsize Your Home. Looking to save some money? Downsizing your home is one option. While this can be an emotional decision, the money you’ll save may be well worth it.
- Transportation. If you and your significant other don’t have a lot of places to go separately, consider cutting back to one car. You’ll save money on gas and get money in your pocket from selling your car. You’ll also decrease how much you need to pay for car insurance.
While retirement can be an exciting thing, we want you to get the most out of the fun by planning well financially. You can start brainstorming ways to save today! It will help if you have a financial plan in motion.
What are ways that you save money for retirement?