10 Things You’ll Spend More on in Retirement
Even if your real retirement is years away, you’ve already had some practice.
That came during the pandemic lockdown and into its aftermath, when many of us were tucked away at home, working remotely. Except for the part where you’re actually working and getting a full paycheck, this is similar to what life is like for many retirees.
So ask yourself: How did your spending fare on that retirement test drive?
Before you can determine how much you will need to save for a fulfilling retirement, you first need to know how much you will spend in retirement. You’ll also need to factor in soaring prices on everything from gas to groceries. Sure, inflation affects everyone, but it could hurt more in retirement when your income will probably be lower.
Financial planners have estimated that retirees need 80% or more of preretirement income to maintain their standard of living, though individual situations vary greatly. Another data point that correlates: According to the Bureau of Labor Statistics’ annual survey on consumer spending, the average retired household spends 25% less than the average working household each year.
That said, some items to do stand out in a retired household, including big-ticket expenses such as health care and travel. Here’s a look at 10 budget categories where retirees are likely to spend more and some tips on keeping costs in check.
Related earlier Retiree News post: 10 Things You’ll Spend Less on in Retirement
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