estate planning checklist

5 expenses that many retirees don’t fully account for

One in 5 retirees doesn’t see this expense coming – or its $315,000 cost tag.

According to the Society of Actuaries study, only one in four retired persons has not experienced any shocking event during retirement. These events, such as a large dental bill, often have a high price tag. This can be especially difficult for retirees because, unlike working and earning a steady income, they must rely on long-term planning and establish monthly distribution checks. The good news is: These shocks can be avoided by increasing your savings. We discuss with retired clients how many months we want to keep our savings aside for unexpected or unusual expenses.

Caring and support for loved ones

This is one of the most unexpected retirement expenses, including the medical needs of a spouse, parent, or child. This will require financial resources and could also involve relocating and consuming hours upon hours of personal time.

Caregiving can lead to financial hardships: According to the report, spousal caregivers aged 59-66 had 50% less IRA assets, 39% lower non-IRA assets, 11% less Social Security income, and 50% less in IRA assets than married non-caregivers. Planning for this stage can be difficult due to the high price difference. The more costly option is the Alzheimer’s unit, which provides 24/7 monitoring for elderly patients. Planning for this stage of your life begins with “looking at your family’s medical history.” It is also essential to consider long-term care insurance.

Healthcare expenses

A study from Fidelity showed that couples 65 and older could expect to spend approximately $315,000 after-tax dollars for their health and medical expenses during retirement. According to the Society of Actuaries, nearly half of retired people are shocked by large out-of-pocket prescription and medical expenses. This does not apply to clients who want to live in assisted living, where someone can cook for them or a nurse checks in on them. RBC Wealth Management’s report found that 65-year-olds in good health can expect to spend up to $100,000 per year on long-term care costs. This includes nursing-home care or home care. Planning for retirement involves considering your health and the quality of your life. You will need additional funds to pay for specialists and medication in your later years.

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Home repairs

According to a Harvard University’s Joint Center for Housing Studies report, 76% of 65-79-year-olds and 68% of over 80-year-olds live in single-family homes. According to an AARP survey, almost three-quarters of those over 50 say they would rather stay in their homes as they age. The Society of Actuaries reported that 28% of seniors would need to repair or upgrade their homes in retirement. A report found that 16% said they were shocked by their home’s decline in value by more than 25 percent.

However, if you plan on home repairs in retirement and do the same thing when you are not there, you will know that things can break down. You have many options to deal with these unexpected expenses, including reverse mortgages and home equity loans (HELOCs).

Having at least one income source is essential to cover unexpected expenses such as home repairs when you plan for retirement. We have two additional sources of income to help with unforeseen costs that should not affect our retirement plans.


According to the Society of Actuaries report, 24% of retirees were surprised at the unexpected costs of major dental work. According to Health View Insights research, seniors can expect to pay more than $20,000 for dental premiums and more than $12,000 for shared costs between the ages of 65 and 87. While Medicare does cover some things, Medicare “doesn’t cover dental for fillings or pulling teeth.” People should seriously consider getting dental coverage. You can avoid stress and plan better for these expenses in retirement.

According to a report by Securian, 52% of young adults live with their parents, almost twice the number who did in 1960. Therefore, it’s so tricky to include it in retirement planning. These expenses are impossible to model financially and often occur in bad times like a recession.

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