The concept of retirement in the US is something that is changing every day. Indeed, the idea that the “average” person will retire at 65 is quickly becoming an antiquated notion, and many people still work well into their 70s because of a lack of retirement funding or pension. As frightening as that reality is, many people still do prioritize setting aside capital for retirement. Nevertheless, even that money might not be enough to cover certain under-the-radar expenses that retirees often have to contend with. Here then, are four financial pitfalls every recent retiree should budget for:
Car Troubles
Do you have a dream car you’ve always envisioned taking on a massive retirement road trip? Plenty of people do. However, that car you’ve been saving up for might throw a monkey wrench into your greater retirement plans. Not only are gas prices on a virtually never-ending rise, but even the finest cars ever made can end up costing their owners significant amounts in repairs and replacements. In fact, the rarer the car, the more arduous the restoration process will likely be.
Funeral/Burial Expenses
It’s one thing to save enough money to last your entire life (and many people don’t save anything at all for retirement); it’s another to have more left over to cover your bills after you’ve died! Morbid though that thought is it is, funeral expenses these days can run up into the thousands. And while you won’t be around to pay it off (obviously) that burden could fall onto your relatives or friends.
Lawyer Fees
The last thing most people want to do is pay for the services of a lawyer during their retirement. Still, there are a number of scenarios that could see retirees needing to spend significant money hiring a good lawyer. Everything from a divorce to an accident of some sort might require the services of a lawyer, and it’s naive to discount those possibilities –– even in your retirement. Plus, you may want to seek out a legal professional to help you draft your last will and testament.
Medical Bills
How can medical bills be something that retirees don’t anticipate? It’s a good question, and what we mean by medical bills is a little different than what you might expect. For instance: it’s unlikely that many retirees think they need to get tested for STDs. Yet, STD transmission rates among senior citizens are higher than ever. And this is just one such example of a “surprise” medical issue that could crop up during retirement. The point is you can never be too careful when it comes to your health. So putting aside (extra) savings for this purpose is always a wise decision.
