Saving for Retirement? Factor in These 6 Continuing Expenses

by Darwin on December 12, 2017

Retirement is supposed to be the most relaxing part of your life. It can be just the opposite of that, however, if you don’t do an adequate job budgeting for your future. Everyone wants to be able to spend their retirement traveling and pursuing hobbies. This will only work for you if you’ve also factored in plenty of money for necessary expenditures. Here are six continuing expenses you need to consider when saving for retirement.


You probably won’t need to leave the house as much once you retire. But you’ll still need a reliable way to get around and see the outside world. People often forget to include travel expenses in their retirement plans. But this crucial category adds up to about 16 percent of expenditures for individuals 65 and older. You will have to pay to maintain your vehicle—and likely purchase a new one at some point if you have a long retirement. It’s also important you don’t forget about fuel costs, which can be quite high depending on oil prices. These things can add up to a significant amount of money over time.

Home Expenses

Your home will likely be the biggest item on your retirement budget. First, there’s your mortgage. In an ideal world, you’ll have this paid off by the time you reach retirement. Your specific arrangement depends on when you bought your home or condo. You will also need to continue carrying homeowners insurance. Neglecting this expense could lead to catastrophe. The government will also keep asking you to pay property taxes after you retire. The cost of this will vary a great deal depending on where you live. These home expenses are all non-negotiable items you must work into your retirement budget.

Food Expenses

You might eat less during your retirement than in earlier parts of your life. But you’re still going to need to eat. If you plan on really living it up in your retirement, you’ll need to factor in some extra money, so you and your significant other will be able to eat out occasionally. Food prices can also go up or down depending on surpluses or shortages. It’s a good idea to put aside more than you anticipate needing for your future food costs.


Some people think that they’re done with taxes once they stop working. This sadly isn’t the case. You will likely have to continue paying taxes in your retirement. Here are a few major things that will require a tax:

  • Home Property Taxes
  • Rental Property (income and property taxes)
  • Investments
  • Other Supplemental Income

Failing to account for taxes will lead to you having much less money than you expected once you cease working.

Medical Expenses

Medical costs can quickly drain your hard-earned savings. Older people typically pay more for insurance—as they are more likely to need medical treatment than younger ones. It’s almost impossible to say how much you will need to save in order to cover all future medical expenses for your retirement. You can make estimates based on today’s values, but these will be outdated ten years from now. Evolving standards for medical and insurance providers keep this cost in a relative state of flux. Set aside as much as you can now.

Unexpected Expenses

No matter how well you plan for retirement, there will be costs that you could never have anticipated. You might need to help a grandchild pay for their education, or your child might lose their job. These are just two possible scenarios that will require you to dig deep into your coffers. However, if you anticipate unexpected costs by building them into your budget, you can roll with these punches.

Changing costs and inflation make it nearly impossible to know how much you’ll need to save for retirement. Try calculating your estimated expenses for each of these categories. Always shoot for the high end of the spectrum, as it’s much better to retire with extra money in savings.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: