17 Unexpected Retirement Expenses

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I wish I could take credit for this list, but I can’t. This is from the Society of Actuaries who outlined these unexpected or shocking expenses in its 2015 Risks and Process of Retirement Survey. I doubt it’s changed much since. Here they’re ranked by the likelihood of it happening.

How many of these unexpected retirement expenses can you cross off?

17.  Loss of capacity requiring someone outside the household to manage your money.

16.  Divorce during retirement

15.  Significant damage to or loss of home due to fire or natural disaster

14.  Loss of home through foreclosure

13.  Bankruptcy

12.  Victimization by fraud or scam

11.  Loss in total value of savings of 10% or more due to poor investment decisions

10.  Death of spouse or long-term partner

9.    Family emergency that impacted the ability to spend on other things or used 10% or more of savings

8.   Going on Medi-Cal/Medicaid

7.   Sudden loss of total value of savings of 25% or more due to a drop in the market

6.   Running out of assets

5.   Illness or disability that limited the retiree’s ability to take care of him/herself

4.   Drop in home value of 25% or more

3.   Significant out-of-pocket medical or prescription expenses from a chronic health condition or disability that did not limit the retiree’s ability to take care for him/herself.

2.   Major dental expenses

1.   Major home repair or upgrades

Believe it or not, virtually all of these can be planned for and eliminated or mitigated, which can help lessen the shock. What have you done?

Jim

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Jim Lorenzen, CFP®, AIF®

Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.  IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.

Opinions expressed are those of the author.  The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

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Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-based registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742.

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