Retiring from the workforce means that there will no longer be a steady income available, which usually means that the retiree will need to rely on the savings that they’ve built up over a lifetime of work. Most retirees tend to plan well for their golden years, making sure that their finances will last with them for the rest of their years. It also means that they know that there will be certain expenses to deal with over the long-term, including medical costs and groceries.
But sometimes there are costs that may take the retiree completely by surprise, which can end in disaster if they are unprepared. Here are some of the most common unforeseen consequences retirees may face at some point.
Major Home Theft
Theft is something that most people will deal with at one point or another throughout their lives, and if there’s a steady income present, it’s often not that big of a deal. But theft during retirement, especially if a lot of expensive items are taken, can be a real blow to the available finances of a retired individual or couple. For this reason, it’s recommended to factor in long-term home insurance into the costs of retirement that will cover everything from home theft and natural disasters, like fire.
Helping Out Family
There are a lot of reasons that a family might battle to make the rent every month. From the loss of a job to an economic recession, financial difficulties are extremely common and affect just about everyone. It’s not beyond possibility that a retiree’s children, siblings, or even their friends might run into trouble and require a little bit of assistance.
In fact, it’s becoming more common for children to return home to live with their elderly parents as the cost of rent has skyrocketed across the world while wages and salaries have stagnated. It might mean having an extra mouth to feed at the end of the month, and it’s something to always be aware of.
It’s something that often goes overlooked but can end up costing a small fortune when calculated over decades. Inflation is inevitable, the prices of goods, services, and taxes will all continue to rise, and it can be an expense that not everyone is prepared for. It’s worth taking the time to look at the history of inflation and how it may grow in the future, and then prepare accordingly. It’s difficult to add it into a long-term budget due to the nature of inflation and how it can fluctuate, but it is still worth keeping in mind when making financial plans for the future.
Losing A Loved One
It’s something that nobody likes to think about, but losing a loved one, such as a spouse, can happen, and it can leave a person in financial dire straits if they didn’t prepare for it beforehand. Widows especially are vulnerable, with many of them having a significant loss to their savings after their husbands pass away. One way to mitigate the risk as much as possible is by having a reliable life insurance policy in place, should the worst happen.