It would be fair to say that there are more than a fair share of misconceptions when it comes to retirement. They range from having more money available, right the way to the one that says everyone will retire at 65 (or the so-called “official” age in your country).
Something that not many sources touch upon are the major expenses that tend to arrive following retirement. Sure, these aren’t going to be the same for everyone, but the vast majority of readers will probably have some expenses to deal with that never crossed their mind.
As such, regardless of how far from retirement you are, read on to find out about some of the major expenses you need to take into account if you are looking to preserve your future.
The costs of getting old
Unfortunately, it’s a fact – we all get old. While some of us might age gracefully, most of us will need a little more care as our advancing years approach.
This is where one, or several, of those unexpected expenses step into the picture. First, we have the elderly care factor. It doesn’t matter where in the world you reside, this is an expensive business. Authorities around the world are trying to make provisions to ensure that populations can afford elderly care, but it will hit your pocket. If you want to delve into specifics, some studies have suggested that it will cost as much as $25,000 a month in some states for full care at a nursing home.
If we turn to a more morbid study, there is also the cost of funeral care. There are umpteen reports showing how much a funeral costs and again, it’s something to consider. Paying for it in advance will save your family a considerable sum though, so this is worth paying attention to as well.
The cost of the kids growing up
Again, we can tap into all sorts of studies which show how much it costs to raise a child. When they grow up, all of these expenses stop, right?
Unfortunately, it’s not really the case. There are of course college fees, if your children are going down that route, but the newest expense on the block comes in the form of funding a house. Due to the soaring cost of buying a home, the bank of mom and dad has become the most popular lender amongst young people. Sure, this isn’t something that you must do, but it’s becoming more “normal” so to speak so you should bear it in mind.
The costs of grandchildren
Just like the previous point, this next one isn’t something that all adults must pay – but again it’s becoming more normal. While you are unlikely to help grandchildren to quite the same extent as your children, it is still going to cost. From day to day costs of looking after them (some countries have even provided tax relief as this is becoming so popular) to aid with the purchase of the property (you might do that again), grandchildren will cost you money, as well as obviously giving you plenty of pleasure.