Retirement is something we all need to prepare for and plan out. We also tend to stress over this more than nearly any other future event. We ask ourselves questions like, “Will I have enough money? What will happen if I outlive my money? What will the economy be like? Will I have Social Security? How dependent will I be on someone else? Will I live at home or in a nursing facility?”
These are a handful of the many questions that will need our time, attention, and serious reflection. In the meantime, there are 7 things we can almost guarantee will increase in cost that needs preparation for our retirement years. Some might be things you’ve never considered.
A huge thank you to Micah Klug of Home Faith Family for this guest post!
7 Cost Increases to Prepare For Before Retirement
1. Home Maintenance
Whether you’re going to try and do as much of the housework as possible, have children or grandchildren come over, or hire help, home maintenance will be required. The home you live in will always need something fixed or updated. Plan for the costs of labor and supplies.
2. Property Taxes
Property taxes have a history of increasing, never decreasing, over time. The only change you can make with this is if you move to a new location with lower taxes. However, be wary. Eventually, they too will increase.
3. Utility Bills
The utility bill will most likely increase after you retire because you will be spending more time at home. You can help fluctuate this cost by keeping lights turned off, setting the thermostat to a lower temperature (at comfortably low – don’t freeze yourself to save a few dollars, please.)
4. Homeowners’ insurance
History has shown that homeowners’ insurance costs are likely to increase over time. It’s the unfortunate nature of the beast. Take advantage of senior discounts, AAA, and other incentives company’s offer to help lower the overall cost.
5. Car Insurance
Car insurance will also increase over time. Take advantage of incentives and benefit’s company’s offer to senior citizens. If you feel uncertain about your driving abilities as you increase in age, consider handing over the car keys to one of your children. This will eliminate your car insurance payment but you will have to depend on upon other people for rides to places.
6. Medical Insurance
Medical insurance will increase in your pre-retirement and retirement years as employers cut back on health care coverage. Your personal health and how often you’re prone to visiting the doctor and your current health state will also adversely affect the increase in costs you may face.
7. Prescription Drugs
Most people think of their retirement years as bliss according to the health and state of their younger self. Very seldom do people think of the possibility of what state their health may be in upon reaching old age. Prescription drugs coverage is a very controversial insurance issue on “who-is-paying-for-what” game. Some insurances may cover some medication or none at all.
The goal is for you to outlive your money. Be wise with what you currently have and do your best to save what you can. As you focus on your retirement fund you will be better prepared to face the increasing costs and challenges that lay ahead.
Micah Klug, author of “50 Freezer Meals: Easy Dinners for the Busy Family” runs a lifestyle blog to help people strengthen their home, faith, and family by living simply without losing quality or sanity.
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