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We all know that planning for retirement is important and you should start stashing money away as soon as possible. After all, the more money you have when you’re older, the more you can enjoy your golden years. If you want to be able to travel, treat your family, and live a full life without worrying about the bills, a good retirement plan is essential.
But even the people that get started early can still fall short because they forget to plan for some big expenses. They do all the sums and they think that they’ve got plenty enough to live on, but they forget these important things that they need to pay for.
Home Maintenance Costs
Being a homeowner is expensive, and that doesn’t stop just because you’re retired. But a lot of people forget to put aside extra money in case the boiler packs up or they need a new oven. Replacing major appliances can be incredibly expensive, so you need to plan for it. You might also want to decorate the house from time to time to keep it fresh, and you’ll need money for that as well. It’s best to work out how much you spend on the house each year, on average, and factor that into your savings plan. If you don’t spend all of that money, you’ve got a bit extra to spend on yourself.
As you get older, you may require some care, whether that is at home or in a care facility. When you are planning for your retirement, it’s a good idea to put aside some money for care home services should you need them. This will make things much easier on your family because, if you haven’t made any arrangements, they will have to come up with the money themselves. Nobody likes thinking about these things, but it’s important to be realistic.
Relatives That Need Help
If you have relatives that need a bit of a helping hand, it’s nice if you are able to be there for them. Maybe one of your children loses their job or a grandchild needs a bit of money to help with their education. This is not a necessity, of course, but if you want to be able to support your family, you should consider this when making your retirement plans. Build a separate nest egg that you can use to help your family in tough times or even put towards things like weddings.
Inflation is one thing that people always forget to plan for. They make their calculations based on today’s prices, but things are going to be a lot more expensive 20 years down the line. When you are working out how much you need to cover all of your expenses once you are retired, it’s important that you add some extra to account for inflation so you don’t fall short. Finding ways to be thrifty will help you offset the impact of inflation as well.
These are the expenses you probably forget when planning for retirement, but it’s not too late to adjust your savings plan!