I Just Retired: Here Are the Unexpected Expenses I Wish I’d Prepared For

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According to a recent Corebridge Financial survey, many Americans expect to retire at 60 and live to 100, giving them a 40-year retirement. However, only 36% were confident in their ability to have the retirement savings to survive until they pass away. The reality of retirement planning is that you’ll have to save more money and be more diligent about your investments because you may end up living longer than anticipated.

As you plan for retirement, you try to account for your expenses so that you can enjoy your golden years. You may not realize that unexpected expenses could come your way as a retiree — following are some hidden costs that a retiree might notice.

Unexpected Retirement Expenses

Here are the unexpected expenses of one particular anonymous retiree who realized they would be spending more money than originally planned for.

1. Child Care Expenses 

“I have a client who became the child care provider for their grandchildren,” shared Elizabeth Buffardi, CFP and founder of Crescendo Financial Planners. “Rather than traveling, they’re paying for museum and amusement park entrances and lunches with their grandkids.”

While you may think that your retirement will be filled with travel and adventure, you could end up becoming a babysitter if your children request your assistance. As a grandparent, it can be difficult to turn down the plea for help, and you’ll be spending money on various activities for children.

This expense is unexpected because when you were working, you likely didn’t have the time to provide full-time care for your grandchildren. In this case, the retiree in question is spending more money on entertaining children than expected — and the fees can add up if you start bringing their friends to activities with you.

2. Financial Advice Fees

“The other expense my client didn’t quite anticipate was having a financial advisor,” noted Buffardi. “I have several clients who decided they wanted help in their financial life because all the decisions were more than they wanted to navigate.”

If you want to enjoy your retirement and not stress about your finances, you may want to consider hiring a professional. However, you’ll quickly realize that paying for money-related advice regarding estate planning, investing, or other issues isn’t cheap. When you were working, you likely didn’t think about this expense because you had set up your investment portfolio and focused on growing your funds. Now that you’re retired, you may spend more money on financial advice.

Advice on Planning For Retirement Expenses

While there’s no crystal ball that will help you predict the unexpected when it comes to figuring out your expenses (and healthcare costs) in retirement, you should do your best to think of likely scenarios. 

Think of Help You May Need

You should consider what other help you may need since you may not have as much energy as you did when you were younger. You may also not want to perform certain tasks now that you have more free time to spend on things you want to do.

Here are a few questions to ask yourself:

• Do you have health or mobility issues that require remodeling a house or moving to a different home?
• Will you need a caregiver, a cleaning person, or a lawn service?

Think of Your Lifestyle Expectations

“Think about what you want to do, what you saw your parents do, and what you see your friends doing,” remarked Buffardi.

As you approach retirement, you should examine your lifestyle expectations and potential expenses. It is vital to be prepared so as to avoid getting caught off-guard with unforeseen costs.

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