Overlooking healthcare costs in retirement
Whether we’re talking about early retirement or waiting until you reach your full retirement age, medical and dental expenses are not to be neglected. You might be eligible for Medicare but the program does not cover everything, especially not dental and out-of-pocket expenses. If you’re not exactly in very good health, have a medical condition or a chronic illness, you should expect those medical costs to become even higher.
To avoid any kind of financial shock, it’s best that you plan ahead and anticipate what you might have to pay in terms of medical and dental costs, to make sure your plans of living a comfortable retirement are not derailed.
To have an idea of some of those possible expenses, check out these 7 Expensive Health Problems That Sneak Up On You After 50.
Refusing to downsize
If your major purchases like cars and houses are eating away more and more of your finances, your retirement might mean debts and bankruptcy instead of leisure trips and new hobbies. It’s important to identify the areas that are getting more and more expensive and do something to lower your overall costs.
Instead of living in a big house that no longer serves its purpose, with the kids living on their own and all, you could consider downsizing and living in a smaller place, much more appropriate to your needs. This way, you get to save more money and set it aside for your retirement days.