Retirement Can Cost a Lot More Than You Think. Here Are Expenses You Might Not Have Thought About
Think back to when you retired. Were you greeted with an unpleasant surprise? There are some retirement costs that can make it hard to live without sufficient savings. Unfortunately, many Americans are not prepared for these expenses. Lack of understanding of retirement costs is partially to blame, however, many also suffer because they expect Social Security to provide more than it does. In any case, it is important to understand the true costs associated with retiring in the United States. Below are some of the biggest retirement expenses you should be thinking about.
Unfortunately, taxes are a reality even in retirement. Funds put into traditional IRAs and 401(k) accounts are taxed when withdrawn in retirement. While you may feel like once you’re retired, you’re done paying, remember that Uncle Sam still gets his. In addition to taxes on retirement funds, most retirees will pay things like property taxes too.
Healthcare costs for seniors can be a huge expense. Insurance costs, co-pays for doctor’s visits, and daily medication can be hard to manage financially. This is especially true when medication costs climb far higher than COLA increases.
Be prepared and expect the unexpected. You’ve probably heard that your whole life. Honestly, it’s pretty good advice. Of course, we don’t want to think about these things. However, emergencies from personal health issues to car accidents or house fires can happen at any time. Facing a costly emergency without the finances to handle it can be frightening and hard to overcome. Read more about retirement costs here at Business Insider.
Clearly, a comfortable retirement can be hard to achieve and requires careful planning. However, we feel that more can be done to improve retirement for those over age 82 who rely on Social Security. A bill we call The Greatest Generation Benefits Act would increase benefits for these Americans by $85 and an additional 4 percent every subsequent year. Help call for the passage of this legislation by signing our petition. Be sure to follow us on Facebook and Twitter for the latest updates!