Surprises Your May Encounter While Living in Retirement

Written by , October 31, 2012

Surprises Your May Encounter While Living in RetirementThere’s probably no other financial consideration that we spend as much time planning for or thinking about over the course of our lives as much as retirement. And even if we aren’t particularly active or diligent in our retirement planning, we are still likely to put in a fair amount of effort over the course of the many decades between when we first start working and when we eventually retire.

But even with all the time you spend planning for retirement, there are still likely to be a number of surprises you’ll face once you actually begin living in retirement.

Here are a few of the most common surprise that others have encountered after they retire.

  • How Much Your Health Care Might Cost. Even though it seems like your health care costs are high now, there’s a good chance that they’ll get even higher as you get older. Even if your overall health stays relatively strong, the cost of even basic insurance coverage is likely to go up as you age. This is especially the case if you ever lose coverage under your current policy and need to get coverage from another insurance provider.
  • How Long You Might Live. We’re living longer lives than ever before. While that’s good news, it does mean that there are certain financial considerations that must be made. Having accumulated one million dollars in wealth used to guarantee an extremely comfortable retirement for a newly retired couple, but that’s no longer necessarily the case with a longer life. It’s important to understand that a longer life expectancy means you’ll need more money to have the same standard of living during retirement.
  • How Your Parents Might Need Help. Another unexpected consequence of our living longer lives is that there’s a good chance that by the time we enter retirement, at least one of our parents will still be alive as well. And it’s an unfortunate truth that sometimes a longer life expectancy doesn’t always mean a healthful one. In some cases a longer life means greatly increased medical expenses. The increased financial needs might well be those of your parents, and you may be called upon to help them.
  • How Your Children Might Need Help. Similarly, even though your children may have graduated and moved away, that’s not to say that they won’t ever move back or need your help. The combination of student loan burdens and a soft job market has meant that many young people are looking to their parents for help, at about the same time the parents are closing in on retirement.
  • How You Might Miss Your Job. Finally, don’t forget that not all aspects of retirement are financial. Retirement represents a significant shift in lifestyle. After many decades in the workforce, it can be difficult to readjust your daily routine, and even your way of thinking about your place in the world, once you hit retirement.
  • Regardless of the challenges you might face even in retirement, you’ll be in the best position to deal with them if you’ve maximized your savings and planned accordingly.

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