The retirement crisis is coming. Are you financially prepared? If you said “yes,” are you sure? You might be surprised to learn you’re not as prepared as you think you are. There are quite a few expenses you still have to take into consideration after you leave your job and ride off into the sunset.
Although you might know how much money you need to retire comfortably, there are some expenses you might not have thought about. Some aspects of retirement planning can be scary, so your first instinct might be to forget about it or leave things to chance. However, when it comes to life after work, letting the chips fall where they may isn’t the best strategy.
Make sure you don’t let anything on your retirement checklist fall through the cracks. Here are 10 forgotten retirement expenses you should not ignore anymore.
1. Helping adult children
Depending on when you call it quits, your nest might not be empty during retirement. Pew Research reported that in 2014, adults between the ages of 18 and 34 were more likely to be living with their parents than with a spouse or partner or on their own. Prepare now for the possibility you’ll still have another mouth to feed and added household costs, such as electricity and water.
Furthermore, roughly 39% of parents surveyed in another Pew poll said they helped their adult children with errands, housework, and home repairs. And 58% said they provided financial help to their adult children. If you have adult children who are experiencing financial difficulty, they might come to you for assistance. If you’re able to help, you might want to temporarily add this as an item in your budget, so you’re prepared. However, make sure you’re aware that becoming too involved in your adult child’s finances could set you back in retirement. Make it clear from the outset that you’re happy to offer temporary help, but you won’t be a source of ongoing financial support.