20 Things You’ll Spend More on in Retirement

Retirement

Many years of hard work and sacrifice culminate in retirement. Retirement is a pleasant time to enjoy the fruits of your labor. Contrary to popular belief, retirees tend to spend more on certain things to maintain their lifestyle. Many adjustments come with retirement, and proper planning is required to survive. Financial advisors estimate that retirees need at least 80% of their pre-retirement income to sustain their living standards. With these in mind, certain expenses are unique in a retired household. Here are twenty things you’ll spend more on once you retire.

20. Traveling

Traveling is at the top of the list of retirees’ favorite activities. It is estimated that seven to eight percent of retirees spend at least 25% of their income on travel. Since you have been working probably all your life, retirement is the perfect time to travel. It is considered therapeutic to travel in your post-work years. If you have enough savings, you can go on a cruise for a whole month and forget about everything that has ever worried you. You can also pack up and go on a weekend getaway with your friends or grandkids. You will discover that you probably need to spend more traveling than you had anticipated. Statistics show that most retirees prefer longer cruises and visit more travel destinations.

19. Healthcare

It is a reality that we tend to spend more on medical care after we retire. Around the retirement age, most of us battle with lifestyle diseases like diabetes and diseases caused by aging. The costs of healthcare continue to increase as we age. According to Forbes, the Employee Benefit Research Institute researched and discovered that households are spending on retirement increases from 8% to 13% once they retire and attain the age of 85. Hospitalizations and costly new diagnoses are the number one contributors to expensive medical care.

18. Clothing

According to Money Usnews, a study done by the Bureau of Labor Statistics shows that older adults aged 65 to 74 years spend an annual amount of $1417. It is absurd to update your wardrobe regularly if you don’t have a job, but you will find that many retirees tend to buy clothes that they don’t need. This behavior can be explained by psychology because it is a repeated tendency to buy clothes. After all, they needed them to go to work. The same case happens subconsciously when retirees unknowingly buy excess clothing they don’t require.

17. Home Renovations

Now that you have all the time as a retiree, you might find yourself using all your free time to spruce up your home. As much as it’s fun and rewarding, it is costly. It is estimated that at least 20% of retirees engage in a remodeling project each year. If you don’t have enough money to remodel your home, you can do simple DIY projects.

16. Transportation

According to research done by AAA, it is estimated that an average retiree spends $571 per month on transportation. It is expected that once you retire, your transportation cost will go down since you are not going to work, but the figure will go up if you own your car. The same statistic shows that you need about $8700 annually to own and maintain your vehicle. Also, your insurance rates will tend to be higher because they increase for drivers who are 70 years and older.

15. Pets

Retirement is usually a lonely period for most individuals. Since your kids are all grown, you might long for love and affection. The next idea will be to purchase a pet, either a cat or a dog, for most individuals. According to Kiplinger, it is estimated that older people aged 65 years and above spend an average of $ 403 annually on their pets. Most of the expenditure goes to the pet’s food and veterinary visits. Many retirees also spend a fortune buying supplies, food, and medicine from online stores. There is also a pet insurance cover, especially if your pet has a medical condition or recurring illness. Retirees should be careful not to spend all their savings on paying insurance premiums.

14. Housing

It is estimated that the average American spends $1294 on housing per month. It is an absurd figure contributed mainly by the peripheral costs of homeownership. Housing is one of the retiree’s most significant expenses. It is advisable to look for ways to lower your housing costs once you retire. One crucial thing is to downsize your space. The other thing is to relocate to a less expensive neighborhood.

13. Daily utilities like Gas, Electricity, Water and sewer, and Cable and Streaming services

Many individuals who work remotely have skyrocketing utility bills. This is one of the realities of staying at home after retirement. An average retiree spends twice as much on utilities than a working household. Retirees are primarily at home, which means they are using utilities more. If you notice a bump in your gas, electricity, water, sewer, cable, and streaming services, welcome to retirement. This should not make you extremely worried because you are about to finish paying off your mortgage, saving thousands each year.

12. Getting one home ready to sell

Selling your home after retirement will cost you more than you can imagine. According to the National Association of Realtors, adults aged 55 years and above account for more than 50% of home sellers. After retirement, some retirees prefer to stay in-home care homes, requiring them to sell their homes before transitioning to the new homes. The process of preparing your home for sale can be pretty costly. It will require working with a real estate agent, repairs, and renovations.

11. Buying a new home

After retirement, buying a home is different from when a young person buys a house. It is more expensive to buy a home than to rent. Buying a new home gives you many expenses, like homeowner’s insurance and property taxes. As costly as it may be, it is less stressful to own a home because you will be free from raising the rent every month. Owning a home offers stability and tax benefits.

10. Settlement and moving costs

Now that you have decided to buy a new home after retirement, you will have to incur an additional expense of settling and moving. According to Fool, transitioning to a new home will require contacting a mover’s company to assist you with moving and settling into your new home. It is also costly to settle in your new home because you will have to pay for the movers and packers, professional house cleaning, lawn care, utilities, groceries, and take-outs.

9. Fitness

Research shows that retirement is one of the many motivators to keep fit. As a retiree, you have a flexible schedule, and you are free from the stressful work life, which makes it easy to adopt healthier habits like spending more time in the gym. Retirees end up paying more for a gym membership, fitness equipment, and fitness classes.

8. Diet and supplements

They say that at least half of the adults aged 65 years and above take daily supplements and vitamins. An improved diet is also necessary to get the needed nutrition. Many retirees tend to spend a lot of money on buying supplements. People over the age of 50 need a daily intake of calcium, Vitamin D, Vitamin B6, and Vitamin B12. They also need to take foods rich in antioxidants like beta-carotene, selenium, vitamin c, and vitamin E to help protect them from diseases. Maintaining a healthy diet and feeding on food-rich vitamins, minerals, and antioxidants is also expensive.

7. Nutrition

The older you get, the more you realize that you need to be careful about what you eat. Maintaining a healthy lifestyle will require enlisting the services of a health professional like a nutritionist. After retirement, many retirees battle lifestyle diseases like cancer and diabetes. It is easier once you retire; you get a personal nutritionist who will help you manage the challenges that come with old age. It is expensive to have a personal nutritionist, but it will be worth it. Even with the vast expenditure, you will be healthier because you are aware of what you are consuming.

6. Entertainment

The transition to retirement does not mean that your life will drastically change. Once in a while, you will desire to hook up with friends and hang out in a restaurant or movie. If you want to hang out with your friends who have left the workforce, you will realize that most will be skeptical about picking up the bill and paying for the entertainment expenses. In the long run, you will realize that you spend a lot on entertainment once you hit the retirement age.

5. Debt repayment

Many retirees are more susceptible to accumulated debts and regular interest rates. According to Visionretirement, since 1989, the average debt has increased in all age groups, but older retirees were hit the hardest. The National Council on Aging research shows that the average amount of debt in individuals aged 65 years and above has increased significantly. This means that older retired adults spend the remaining part of their life repaying the debt. A more significant percentage of their retirement benefits service the debts and the loans they acquired during their pre-retirement years. Credit cards with high-interest rates are another major threat to retirement benefits.

4. Gifts for grandchildren

As you age, your grandkids become your little bundle of joy. If you are not careful, you might spend a fortune buying them gifts to make them happy. A study done by AARP shows that 25% of retirees spend over $1000 annually to buy their grandkids gifts. This kind of expenditure stems from the fact that older adults naturally have a heart for giving, especially their kin, and feel responsible for their grandchildren’s daily expenses and educational costs. Retirees should consider using the 529 plan if they want to pay for their grandchildren’s college. Lastly, you will discover that your grandchildren value quality time with you more than gifts, and a simple, inexpensive gift will go a long way.

3. Charitable giving

Statistics show that 11% of the donations received by religious organizations, charitable institutions, and political organizations are from Americans aged sixty-five and above. Older retirees like seventy-five years and above donate even more. The explanation for this behavior is that it is partly psychological. Research shows that older adults enjoy giving donations compared to the younger generation. With this in mind, there are companies like EverSafe dedicated to ensuring that a retiree’s finances are intact and there are no excess withdrawals injected into donations.

2. Reading

The Bureau of Labor Statistics research reveals that an average household spends $101 on reading before retirement. This cost is split between buying books and reading devices such as kindle. According to ReadersDigest, the same research shows that there will be a 73% increase in this expenditure; an average household will spend $173 on reading. A significant percentage of this expenditure goes to online subscriptions such as newspapers, audiobooks, and magazines.

1. Financial Planning

It is commendable if you retire and have accumulated enough wealth to take you through the retirement period. As much as you have accumulated enough wealth, you will also need a financial planner to advise you on using the wealth and make it work for you. The services of financial consultants are invaluable in retirement. The assistance is not free, meaning you will incur some extra costs. The amount charged will depend on the consultation and your preferred management style.

Conclusion

Retirement has its ups and downs. It is good to do your research before retiring and know what to expect. Proper planning is critical for retirement because it will help you sail smoothly through the remaining years of your life. With all the necessary measures in place, your retirement should be an enjoyable time as you celebrate the fruits of your labor.

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Careers CEOs Companies Education Entertainment Legal Politics Science Sports Technology
10 Things You Didn’t Know about Angad Kikla
Leadsquared
20 Things You Didn’t Know about LeadSquared
Digital Coaching
20 Things You Didn’t Know About CoachHub
Collectibles Credit Cards Investing Real Estate Stocks
Inflation
Here’s How to Figure Out Your “Personal Inflation Rate”
Irrevocable Trust
What Is An Irrevocable Trust, And Do You Need One?
Credit Card
10 Reasons Why Your Credit Card is Being Declined
Aviation Boats Food & Drink Hotels Restaurants Yachts
Boating
What Happens If a Boat Is Struck By Lightning?
Miami
Where to Find the Best Indian Food in Miami
Virginia Camping
The Best Glamping Campgrounds in Virginia
BMW Bugatti Cadillac Ferrari Lamborghini Mercedes Porsche Rolls Royce
1995 Ford F-250 XLT SuperCab
Remembering the 1995 Ford F-250 XLT SuperCab
20 Cars Similar to the Buick Verano
1989 Porsche 944 S2
Remembering the 1989 Porsche 944 S2
BMW Motorcycles Buell Ducati Harley Davidson Honda Motorcycles Husqvarna Kawasaki KTM Triumph Motorcycles Yamaha
2002 Ducati 998
Remembering The 2002 Ducati 998
1980 Harley-Davidson FXB 1340 Sturgis
Remembering The 1980 Harley-Davidson FXB 1340 Sturgis
1977 Harley-Davidson XLH 1000 Sportster
Remembering The 1977 Harley-Davidson XLH 1000 Sportster
Electronics Fashion Health Home Jewelry Pens Sneakers Watches
Massage Chair
The Most Expensive Massage Chairs Money Can Buy
Nike Zoom Freak 4
A Closer Look at The Nike Zoom Freak 4
Vertex M60 AquaLion ISO-Certified Diver
A Closer Look at the Vertex M60 AquaLion ISO-Certified Diver
Noella Bergener
How Noella Bergener Achieved a Net Worth of $1 Million
Tyson Beckford
How Tyson Beckford Achieved a Net Worth of $8 Million
David Arquette
How David Arquette Achieved a Net Worth of $30 Million
How Ashley Flowers Achieved a Net Worth of $5 Million