There’s plenty of expenses that you’ll have to worry about in retirement. With the cost of healthcare and entertainment, along with travel expenses generally rising in retirement, just to name a few, it can be reassuring to learn that there’s a few areas where you might save some money in retirement. In fact, here’s five expenses that can practically disappear altogether!

With the costs of commuting rising every year, it’s no surprise that when you stop commuting you also save money. From bus tickets to gas prices, when you’re no longer sitting in traffic every morning or cramped on public transportation, your costs should drop drastically. The money that you otherwise would have spent on your commute is now yours to keep.

Another cost that disappears in retirement is Payroll taxes. When you are no longer working, you don’t owe any payroll taxes. This means the 7.65 percent of your salary that used to be taken away each month is no longer an obligation.

Once you retire, another expense that you don’t have to worry about is saving for retirement! After spending so many of your working years saving for the future, you finally can enjoy your savings. Instead of paying into your retirement accounts, you will be withdrawing from them. Some people also decide that after they retire they no longer need life insurance and disability insurance. Disability insurance is designed to replace a worker’s income when they are injured and unable to work, and most don’t see it as necessary once they retire. Life insurance is generally for the event that the worker dies unexpectedly and leaves their family without income and the idea that you have enough money to retire usually means this is no longer applicable for some. If you’ve properly financed your retirement goals, you should feel comfortable with your retirement income and how it’s applied to your different expense categories.

Another item that you might save money on after you retire is clothing. Work related attire can be pricey and there’s no need to buy new dress pants or blazers so frequently once you retire. You will no longer be dressing up for important meetings and presentations, and a more modest wardrobe is generally adopted. Once you trade those fancy suits for jeans, you could end up cutting costs dramatically.

At SHP Financial, we can look at your entire financial portfolio, your lifestyle needs and your retirement goals to create a plan that works for you. We want you to be prepared for the costs and savings that come with retirement so that you aren’t faced with surprises.  Knowing the expenses that disappear during retirement is just one step in your full retirement plan. Click here to schedule your comprehensive, no cost, no obligation financial review today and continue the right path to retirement.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. 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.
Was this information helpful? Should we publish more like this?