Retirement is the finish line after a marathon of hard work that lasts decades. But let’s be honest — it’s really hard to figure how much is enough to squirrel away for those golden years. Retirement itself is like a delicate balancing act — it all depends on the moving pieces of how much you need to save, how much it’ll cost to live comfortably and, of course, how expensive life becomes when that time rolls around.
It’s not a big secret that retirement will be more expensive than you thought, but learn about tell-tale signs yours might get pricey — and click here to read about ways you can prepare.
You Don’t Have a Long-Term Care Plan
Retirement is expensive in general — and those dollar signs could just keep multiplying if you need long-term care. Nobody intends to wind up needing long-term assistance, but not addressing the elephant in the room will end up costing you a fortune — especially since more than half of adults turning 65 today will need long-term care.
You’ll Live Longer Than Expected
Now, at first glance, that might seem less like a problem and more like a blessing — everyone hopes to live as long as possible to spend more time with their loved ones. But existence isn’t cheap — and if you outlive your expectations, you could be left footing a hefty bill.
High Healthcare Costs Catch You Off Guard
Medical care isn’t cheap — and the amount you’ll be utilizing healthcare services in retirement is going to multiply. According to a study by Fidelity Investments, an average 65-year-old couple retiring this year will need $275,000 to cover medical expenses in retirement. Don’t low-ball your doctors’ bills — your life quite literally depends on it.
You Spoil the Grandkids
Being a grandparent is a life-changing event — you get the best parts of parenthood without the diaper changes, late-night feedings and day-to-day stress. But don’t confuse love with being a human ATM — going overboard on your littlest loved ones can be a serious threat to your retirement fund, especially if you opt to pay for college tuition costs or fork out to visit them regularly.
You Get Divorced
The kids have finally left the nest, you and your spouse have finally left the 9-to-5 grind and suddenly — it’s just the two of you. Sadly, sometimes that combination spells out a recipe for disaster in regard to marriages. There’s no quicker way to thwart retirement plans than to lose half in a divorce, leaving both spouses suffering with less as well as having to double the cost for daily living expenses.