The BIG 6 Retirement Costs You’re Probably Overlooking

When planning for retirement, it’s easy to think about the basics such as your pension pot, living expenses, and maybe some holidays.

But what about the other hidden costs?

In this blog, you’ll discover the big 6 overlooked retirement costs that could impact your plans if you’re not careful.

1. Healthcare and Long-Term Care

While the NHS covers many healthcare needs, as you age, you might find you need more support than you realise.

Whether it’s private treatments, prescriptions, or home adaptations, these costs can soon add up. And if you ever need long-term care, such as moving into a care home, the expenses can be substantial.

It’s important to be aware of the increasing number of people requiring care these days. As we live longer, the UK’s ageing population is putting more pressure on social care services, leading to an increased need for care home spaces.

You might believe that you’ll never need to move into a care home, but the numbers tell a different story. Recent research shows a significant increase in the demand for care homes. In fact, the percentage of elderly people aged 85 and over who need care is expected to rise dramatically.

To learn more about planning for these costs and how we can help, visit our Care Fees Planning page.

2. Home Maintenance, Upgrades & Adaptations

As time goes on, homes inevitably need work. Whether it’s a new boiler, roof repairs, or making your home more accessible, these maintenance costs in retirement are often significantly underestimated. Since these aren’t regular monthly expenses, they can easily be overlooked in your planning, but they can quickly put a dent in your savings.

Our expert team of Financial Planners can help you assess your individual circumstances and incorporate these costs into your financial plan.

One effective way to manage these expenses could potentially be by downsizing your home. If you’re curious about whether this could be the right choice for you, check out our blog, ‘Downsizing in Retirement: Is It the Right Move for You?’ It explores the benefits and considerations to help you decide what’s best for your retirement.

3. Unexpected Family Support

Many retirees find themselves supporting family members in unexpected ways. Whether it’s helping grown-up children with a house deposit, covering education fees for grandchildren, or providing care for elderly relatives, these costs can add up.

It’s important to factor in potential family support to avoid compromising your long-term financial stability. The last thing you want is to reach retirement and face unexpected expenses, leading to difficult conversations, as managing finances with friends and family can be challenging even at the best of times.

4. Lifestyle Costs

Retirement isn’t just about covering the basics—it’s about enjoying life!

Whether it’s travelling, taking up new hobbies, or socialising, lifestyle costs in retirement are often higher than expected. Many assume they’ll spend less as they get older, but the opposite is often true. Especially in the early stages of retirement, when you’re hopefully still fit and healthy enough to enjoy your newfound free time.

Planning for these expenses ensures you can fully enjoy retirement. After all, you’ve spent years working and saving, so why not treat yourself?

Our Financial Planners make it a priority to include lifestyle activities in your plan, ensuring you can afford the things you deserve. We believe these costs are just as important as the essentials.

To learn how to manage your retirement expenses while enjoying life to the fullest, check out our blog on avoiding the worry of running out of money in retirement here.

5. Funeral and End-of-Life Costs

No one likes to think about it, but funerals and end-of-life costs can be a significant financial burden.

Having funeral plans or setting aside dedicated savings, you can ensure your loved ones won’t have to face the financial strain during an already difficult time.

This gives you and your family peace of mind and lets you choose how things will be handled, making sure everything is done the way you want.

6. Vehicle Replacement and Maintenance

For many, driving is still an important part of daily life, whether you’re visiting family or enjoying trips.

However, maintaining or replacing a vehicle is a significant cost that’s often overlooked. Car repairs, insurance, fuel, and regular maintenance can be expensive.

Eventually, you may need to replace your vehicle altogether, which can take a significant chunk out of your savings. Planning for future vehicle costs ensures you won’t be caught off guard.

Planning Ahead with Confidence

At Joslin Rhodes, we believe retirement should be a time of freedom and enjoyment, not financial worry. That’s why our tailored lifestyle financial plans help you cover all the bases – even the costs you might not have considered so you can feel confident and secure that you have everything covered.

By taking a proactive approach and planning for these overlooked expenses, you can ensure your retirement is everything you’ve dreamed of and more.

So, If you’d like to talk about your retirement plan, we’re here to help. For over 20 years, we’ve been helping people across Teesside retire happily, confidently, and often much earlier than they thought!

Simply tap here to get in-touch today.

Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People