6 Expenses Retirees Never Regret Keeping in Their Budgets, According to Experts
Written by
J. Arky
Edited by
Ashleigh Ray
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Being retired means that you have all the time and freedom in the world, yet not all the money.
In the transition from working to not working, you’ll find yourself on a fixed income from savings, Social Security and any retirement plans that you’ve been contributing to over the years. However, in this time of their lives, retirees still want to indulge in what makes them happy.
“Retirement is a stage in life that we can make vibrant, fulfilling and joyful,” said Jason Brooks, the founder and co-director at UK Linkology. “We can ensure a healthy and positive retirement by investing in quality experiences so that we can continue to live a healthy and fulfilled life.”
Brooks noted that, just like in any other stage of life, quality matters. You should take advantage of opportunities to spend wisely and invest productively pre- and post-retirement, so you can make the most of your golden years.
GOBankingRates reached out to a few financial planning and retirement experts to find out which expenses retirees never regret keeping in their budgets.
Healthcare
Heathcare includes everything from insurance premiums and medications to potential out-of-pocket costs, all of which are essential for retirees and crucial for them to enjoy their retirement.
As Taylor Kovar, the founder and CEO at 11 Financial, explained, “As people age, the need for medical care typically increases. Comprehensive healthcare coverage ensures access to necessary treatments and services without financial strain.”
According to him, “Retirees [should] prioritize [their] health to maintain well-being, address chronic conditions and manage unexpected health issues effectively.”
Home Maintenance
Keeping and preserving the value and safety of their property is also crucial for retirees, added Kovar.
“Regular upkeep prevents costly repairs in the future and ensures the home remains a comfortable and secure living environment,” he continued. “This expense is necessary to maintain property value, reduce the risk of hazards and provide peace of mind for retirees living on a fixed income.”
Giving Back
In Kovar’s professional opinion, prioritizing charitable donations allows retirees to support causes they care about, contribute to community welfare and make a positive impact on society.
“Charitable giving provides emotional fulfillment, a sense of purpose and a legacy of philanthropy,” he explained. “It fosters compassion, empathy and social responsibility, enhancing retirees’ overall well-being and leaving a meaningful legacy for future generations.”
Hobbies and Leisure
Hobbies and leisure activities, such as gardening or crafting, can be seen as essential for mental and emotional health, and therefore, a necessary retirement expense. By investing their money in experiences instead of things, retirees can keep their minds and bodies active while also being productive.
Travel
Kovar mentioned that budgeting for travel and leisure can improve retirees’ quality of life by providing relaxation, exploration and personal fulfillment opportunities.
He said, “Travel allows retirees to visit family and friends, explore new destinations and engage in recreational activities that promote mental and emotional well-being. These experiences contribute to a fulfilling retirement and create lasting memories.”
Justin Haywood, a certified financial planner (CFP) and the founder of Haywood Wealth Management, agreed.
“Retirees should keep travel in their budgets because it brings immense joy and fulfillment,” said Haywood. “As long as they set realistic travel goals and manage their finances wisely, they can continue to enjoy the benefits of exploring new places and spending time with loved ones.
“Travel allows retirees to create unforgettable experiences and memories,” he continued. “Whether it’s visiting new places, exploring different cultures or spending quality time with family, travel enriches their lives in ways that material possessions cannot.”
Family
It almost goes without saying, but many retirees are also finding themselves in the position of being grandparents. The best thing about that title? Spoiling and indulging their grandkids.
“Helping children or grandchildren pay for college, a down payment on a home or other major life events can be immensely rewarding,” said Prestizia Insurance founder, John Crist.
“As long as you go in with full knowledge of the financial implications, funding important milestones for family is an expense few retirees regret.”
Final Take To GO
These expenses are acceptable on a fixed income because they are investments in a fulfilling and sustainable lifestyle. By making thoughtful choices and prioritizing their well-being, retirees can navigate the financial challenges of a fixed income while still embracing the opportunities and joys that come with this stage of life.
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