3 Overlooked Retirement Expenses
by Matthew C. Peck, CFP® CIMA®, Co-founder
When you’re retired, every out-of-pocket expense is magnified.
You think twice every time you break out your wallet or write a check. And it’s because you don’t have an endless supply of money.
If you’re blindsided by an unexpected expense in retirement, you could be forced to make significant sacrifices to your lifestyle or go back to work.
Below are some of the most commonly overlooked and underestimated retirement expenses…
- Inflation: Most people don’t consider inflation as an expense, but it is. It raises the price on everything you buy. And when inflation rates are 2x or 3x higher than normal, your retirement expenses could literally double in just a handful of years.
- Healthcare: Most people believe Medicare will cover their medical bills in retirement. But that’s not true. Medicare picks up some of your healthcare expenses, but not all of them. According to an article from Marketwatch, a healthy, average 65-year-old couple who retired in 2020 will spend $662,156 on retirement health care expenses.
- Taxes: Most people believe they’ll be paying fewer taxes in retirement. That’s understandable because they’re no longer earning a paycheck. But that won’t be the case for most hard-working Americans. When you add up the taxes on your IRA and 401K withdrawals, social security benefits and other investment income, you could be paying even more taxes when you’re retired.
When you’re living on a fixed income, the last thing you need is a financial surprise. That’s why it’s critical you don’t overlook or underestimate a critical expense in retirement!
If you need help planning for your retirement expenses, at (866) 746-2401 or ask@shpne.com.
The content of this advertisement was prepared by TRIAD Partners. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk, and unless otherwise stated are not guaranteed. Be sure to first consult with a qualified financial advisor and or tax professional before implementing any strategy discussed herein. Hypothetical examples and illustrations are for example purposes only and individual results will vary. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product. Offices in Westborough, Marlborough, Dartmouth, and Braintree are offices of convenience and only used for client meetings. SHP Financial utilizes third party marketing and public relation firms to assist in securing media appearances, for securing interviews, to provide suggested content for radio, for article placements, and other supporting services. SHP Financial has qualified for multiple awards through various contests — some of which were based off of employee/ employer surveys, community votes, and/or paid entries.
Source: Marketwatch
