Some Expenses That Can Deplete Your Retirement Savings

Finance & Money Blog

Although many people take care to save enough money for their retirement, they find that now they are older, they have to pay out for additional costs that they were not budgeting for. This can quickly eat away at the saved money and leave a person with barely enough – or in some cases, not enough – to get by in their latter years. This article examines some expenses that can cause you to lose some of your savings.

Fitting Your Home With Medical Equipment

When a person is in their 40s or 50s, getting around their own home is not something that they have to stop and think about; it is done naturally. However, as you get into your later years, stairs that were not a problem before can suddenly become very difficult to climb. In some cases, a set of stairs can isolate a person from the rest of their home. Many people will install equipment in their homes, for example, stair lifts, new showers and baths, that are easy to get in and out of and railings or ramps to access their home easier. These types of upgrades can be very expensive, and can take a considerable chunk out of any savings.

 Unable To Do It Yourself

This is also an area that many people do not think about when they are younger. Cleaning windows, cutting grass and gardening, and even cleaning your own home is so natural for people in their 40s and 50s that they fail to budget for a time when this type of work will need to be outsourced for a price. People who run their own gardening or cleaning businesses are there trying to make a profit, and this means that it can be expensive when you have to hire out three or four businesses to do work around and inside your home. Some of the work needed to be paid for is regular, and this can soon eat away at any savings.

Supporting Adult Children

In today's age, it is common for a child to still be living with their parents in their 20s and 30s. Many children do attend further education but come out of college with no savings, high student debts and low prospects for finding a financially rewarding job. This can mean that they rely on their parents for things such as loans to help boost their incomes, advances to help with a marriage, or even for money to help put a down payment on a house of their own. This can rapidly decrease your own savings.

One of the best things a person can do it to take the time to understand their needs – and plan financially – for their later years. Contact a professional for aged care financial advice.

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15 April 2015