6 Things Retirees Should Never Be Cheap With
Written by
Brooke Barley
Edited by
Jenna Klaverweiden
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Retirees are often looking to save as much cash as they can. It’s one thing to look for deals, but it’s another to sacrifice health or well-being to save some money.
Below are the line items that experts recommend retirees should not bargain-hunt for. Also check out the one thing you should not get rid of when cutting expenses for retirement.
At-Home Care
“Don’t cheap out on at-home care services if you’re looking to age in place,” explained James Bowdler, founder of PrimeCarers.
He added that trying to cut costs around in-home care can lead to poor treatment and health decline during golden years. “One aspect of a great retirement is making sure that your daily needs are met without compromising your dignity and independence,” he explained.
Bowdler recommended hiring reputable caretakers rather than going through an agency. This way, those seeking care can vet the caretaker directly and ensure all their needs are met.
Home Adjustments
Some retirees might need to make changes to their home to accommodate their needs. Bowdler explained that it’s best to get trustworthy companies and workers to make those changes rather than simply looking for the best price.
“Be sure to go with high-quality materials and reputable companies when installing home modifications such as grab bars or stairlifts to make aging in place safe and viable for you,” he said. “While these modifications can have a huge upfront cost, it would be worth it in the long run if you compare it to moving to an assisted living facility or the hospital bills you’d incur without them in place in your home.”
Long-Term Care Insurance
Insurance is often one of the top expenses for retirees. Joe Cronin, president of International Citizens Insurance, explained that while it might seem like a lot of money to add to the budget at first, long-term care insurance is definitely worth it.
“Healthcare prices are rising constantly and, more often than not, even exceeding the general inflation rate, thus making it even more prudent for people to have some form of financial buffer,” he said. “Investing in a long-term care policy, in essence, would help protect retirees against rising costs, thereby maintaining a standard of living and financial stability.”
Financial Advice
Personal finance expert Erika Kullberg, founder of Erika.com, explained that being cheap when it comes to investment advice could cost you, and you’ll likely get what you pay for.
“Retirees should spend money for reliable professional advice. So much of your retirement hinges on your investments, and taxes can be one of the biggest expenses for retirees,” she said. “Retirees should ‘splurge’ on reputable professional help with financial planning, tax advice and estate planning. In this area, good advice should pay for itself.”
Wellness Activities
Kullberg explained that retirement should be enjoyable and that retirees deserve to indulge in activities that help keep them feeling healthy.
“Without your health, it’s difficult to enjoy this time that you worked so hard for — retirement is a time to spend with family and enjoy hobbies and interests. Retirees should leave room in their budgets for activities that contribute to their overall health and wellness,” she explained.
Emergency Fund
It’s a classic for a reason. Kullberg explained that you’re never too old to have an emergency fund.
“While retirees don’t have to plan for unexpected job loss, there are many surprise expenses that can pop up in retirement. Seniors can be especially vulnerable to getting into debt if they don’t have adequate savings on hand for emergencies. Retirees should allocate money to replenishing their emergency fund regularly,” she said.
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