• Posted January 31, 2023

Costs to Factor into Your Retirement Plan

As you approach retirement, it’s essential to understand the different financial components that should be considered when creating a retirement plan. It’s essential to plan for housing costs, healthcare expenses, and inflation. Doing so will help you determine how much money you need to save and how best to invest that money for retirement. Our certified financial planners in Hartford, CT provide financial and retirement planning services.

Read on for more information about the essential costs to factor into your retirement plan. 

Housing Costs 

The cost of housing can significantly impact your monthly budget as you enter retirement. Consider any changes that may occur during this time, such as downsizing or moving closer to family members.

If possible, it’s beneficial to make sure that your home is paid off before you retire so that you don't have an extra expense each month. Additionally, research the property taxes associated with your current or potential new homes to ensure they are within your budget. By taking these steps, you can make sure you have sufficient funds for housing throughout your retirement. Our certified financial planners in Hartford, CT can provide financial and budget planning services for your retirement.

Healthcare Expenses 

Healthcare costs tend to increase with age, so it’s essential to plan for medical bills in retirement. Medicare covers most healthcare expenses, including hospice care.

But some services are not covered by Medicare and must be paid out-of-pocket or through supplemental insurance policies. Researching these services and their associated costs can help provide a better idea of how much money should be allocated toward healthcare expenses in a retirement budget. 

Inflation 

Inflation is a major economic factor when preparing for retirement because inflation erodes purchasing power over time due to increasing prices of goods and services. To ensure your savings last throughout retirement, talk with a financial advisor about making investments that keep up with inflation rates over time and provide consistent returns on investment (ROI). This way, even if prices rise significantly in the future, so will the value of your investments!

Retirement planning is complex and requires careful consideration of all financial factors, such as housing costs, healthcare expenses, and inflation rates. To make sure you have enough saved for retirement without running out of funds later down the road, research these costs thoroughly before beginning your plan or consult with a trusted financial advisor who can offer additional guidance on how best to prepare financially for the future. With proper planning and preparation, you can enjoy life after work worry-free!

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Contact Tenpath Financial Group for certified financial planning services in Hartford, CT.