This is what you should be saving for in your old age. Warner Bros/Courtesy Everett Collection Americans 65 years and older may not have as many job-related costs, such as commuting to an office or work clothes, but they still spend plenty, according to data from the Bureau of Labor Statistics. Housing was their greatest expense, at more than $15,500 a year (and about a 35% share of the household budget). Cash contributions, such as donations and child support, was more than $2,000, the data showed. See: Money milestones: This is how your finances should look in your 50s Out-of-pocket health care cost almost $6,000 (and 13% of the budget). Health-care costs can range, and aren’t always expected, but sometimes are extremely high for retirees. Experts say it’s important to account for health-care expenses when planning for retirement, but it’s still one of the top reasons Americans are anxious about their futures. Experts suggest before someone retires that they consider all their future bills and financial goals, perhaps even living on the budget they expect to use in retirement, to avoid potentially running out of money. And most retirees will tell you their biggest financial regret was not saving enough for retirement earlier. Here’s a breakdown of older Americans’ spending habits, according to the Bureau of Labor Statistics:
Let’s face it, retirement usually comes with a lot of curb appeal. The landscape and lawn appear well manicured, the furniture on the front porch is colorful and inviting, and the hearts carved on the shutters are supposed to be the sign of a happy home.
Even as you walk through the front door, you may find a warm and welcoming environment, with things neat and tidy, and a sense that everything is alright.
However, those are the public places that we allow other people to see and experience. It’s our outward appearance, and similar to the financial focus of traditional retirement planning, it’s only a small part of who we are and what is going on in our lives.
The truth is, in every house, there are rooms no one wants us to see, places where the door is always closed or locked. It’s off limits and nobody has been allowed inside there for a long-time.
I’m talking about rooms of regret, loneliness, despair, resentment, heart ache, and fear. They are all very real parts of retirement that you can’t just paint or wallpaper over, hoping that those thoughts and feelings just go away.
You see, just as you hire an expert to inspect a new home for potential problems or costly repairs, so too is the case with the transition into retirement. A cursory financial review is great, but its critical to your long term success to find an expert who can check the other foundations of your retirement. In other words, the thoughts and feelings that hold everything together.
Unfortunately, many people walk into retirement, thinking they have a well-constructed home that may only need a few upgrades. But as the walls come down they realize their relationships are wired the wrong way, that mold has grown over their passions and hobbies, and that they have…