How to avoid hidden Retirement Costs

Financial planning can be overwhelming at the best of times. It is important to keep in mind that as we are all different not one option is right for everyone. A Retirement plan that may work for your next door neighbour, could be ruinous to you.

Further their might be numerous hidden costs that can ruin an otherwise attractive looking option so always keep in mind to

Be critical of overly conservative investments and try to aim for more of a long-term approach .

Don’t neglect short-term savings, you never know when you might be faced with an unexpected medical emergency. Having Short term savings allows you to utilise these instead of accessing your retirement fund, which may incur costs such as penalties and loss of interest.

Remember that Medical expenses aren’t all covered by Medicare. It’s always best to plan for the worst case scenario and expect to have to pay all the Medicare expenses.

Don’t forget to plan for asset maintenance. If you own a house or a car there will be constant costs involved, such as servicing and repairs. Don’t neglect to make an allowance for these.

Have you thought about travel costs? Do you have family or friends that live abroad? Even if you answer is No it might so happen that your Children or grandchildren decide to move out of state. Keep this in mind when making your plans.

This list could go on and on. What about a child that may have been laid off and needs financial assistance for a while, or a beloved pet that needs a major operation. So the most important thing is to plan for the unexpected and know which cuts you are willing to take if it comes to that. It might mean downsizing or cancelling a planned vacation. But going through this notion early on will allow you to make better thought out decisions when the time comes.