Avoid Unexpected Retirement Costs

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Learn how to plan for unexpected retirement costs with safe money alternatives. Secure your future today! Explore more at SafeMoney.com. Finances continue to be a top retirement concern, as surveys show. In a recent study by the American Institute of CPAs, 57% of CPA financial planners reported their clients’ foremost retirement concern was “running out of money.” When asked what the sources of this client stress were, 76% of the financial planners said healthcare costs. Other causes of financial stress were lifestyle expenses (52%) and unanticipated costs in retirement (47%). Given these concerns, it’s critical to ensure we’re ready for monthly income needs in retirement. But there are a number of retirement expenses which can give us the slip. Some costs are hard to project, such as healthcare costs. Then there are life changes which can completely transform a retirement budget, such as doting on grandchildren. Here’s a look at some retirement costs to keep in mind – and to help you avoid the financial shock of unexpected or harder-to-predict areas of retirement spending. Retirement Costs Overview Keep in mind that retirement spending will vary from household to household. Retired households spent an average of $42,779 per year, according to the most recent Consumer Expenditure Survey data from the U.S. Bureau of Labor Statistics. Here are some of the more impactful areas of retirement spending to consider. Healthcare costs in general. Even if someone has consistently good health, they’ll still have to pay for insurance premiums, any applicable co-payments, and items which aren’t covered by insurance. According to HealthView Services, an average, healthy 65-year-old couple retiring this year will face up to $377,412 in total retirement healthcare costs. When inflation is factored in, the costs go up even more. Over a 30-year time horizon, that’s $6,290.20 in annual costs per person. HealthView Services’ total healthcare project includes insurance premiums, deductibles, co-payments, and costs for items which insurance doesn’t cover. This brings us to the next point. Medicare premiums and other related expenses. As an important retirement milestone , Medicare covers about 60% of healthcare costs. So, supplemental insurance may be worth consideration. In general, Medic