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Prepare for the Hidden Costs of Retirement

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Are you ready for retirement? Even if you have spent years saving for your retirement, some soon-to-be and current retirees are finding that they may not have saved enough for their retirement.Retirement does not come cheap and it’s important to account for the potential hidden costs that you may encounter.

Hidden Costs of Retirement

1. Housing – Even if the mortgage is paid off, you are not free of paying for property taxes and maintaining the home. Retirees still need to pay for  the property taxes and insurance on the home and take that into account for their financial planning. There is also the cost of maintaining the home, especially if the home is older. Leaky roof? Broken windows? Unexpected and expected repairs and renovations to the house can be costly.

2. Relocation – Are you considering moving after you retire? Many retirees opt to move to places that are warmer or even closer to family. Relocating does come with a cost and ones that build up quickly. Budget for the costs of moving, which includes housing, paying movers and even possibly buying furniture and decor for their new place. Also, depending on where you are moving to, the cost of living may be higher than your previous location, so keep that in mind when preparing to move.

3. Healthcare – It is always advisable for retirees to plan for the costs of medical care despite how healthy you feel right now. Even though Medicare is available to help cover some medical expenses; it does not pay for everything. Prescription medicine, co-pay and other procedures may not be covered by Medicare during retirement. In addition to regular medical care, borrowers should also plan to budget to long-term care, to help prevent their spouse and family members from being financially affected.

4. Unplanned Financial Hits – Unplanned financial hits can be any large financial costs that you did not plan for. If there is a natural disaster that damages the home, or the car breaks down – replacing and repairing these big ticket items can be costly. Cushion your retirement funds to make sure that you are able to prepare for any unexpected costs that may occur.

5. Supporting Family – Family is about being there for each other, and in personal financial crisis, parents may continue to help support their kin until they are able to get back on their feet. Grandparents are also taking the opportunity to invest in their grandchildren’s education and college and private education is by no means cheap, and unfortunately continues to rise.

With reverse mortgages, retirees are able to use it as a part of their retirement planning strategy. This is a special loan that is available to homeowners ages 62 and over, and turns a portion of the equity in their home into cash. One of the benefits is that with a reverse mortgage, you are able to use the money however you choose. Borrowers are able to use their funds to buy a vacation home, to pay for medical expenses, to help family members out and more. A reverse mortgage loan can also be an essential part of the retirement strategy. If you are interested in doing a reverse mortgage, speak with a Senior Advisor today at 1-888-808-8486.

Read Related Articles:

Retirement Planning & Reverse Mortgages

Reverse Mortgages for Long-Term Care Costs

Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net

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