• Question
  • Costs of retirement

    Asked by someone from Albuquerque, NM on 3/13/2014

    What costs may be greater in retirement than they are now

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  • Categories: Retirement Planning, Inflation

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Great question - assuming that we continue to have inflation then basically everything will cost more. One thing many people on a fixed income that does not increase with inflation do not plan for is that at ~ 3% inflation (which is around recent historical norms) over a 20 year period (which many people live through in retirement) costs of everyday goods and services will double. If your budget is $2,500 a month now - then in 20 years that same set of goods and services will cost $5,000.

    Unfortunately health care costs have been increasing much faster than the standard inflation rate recently so you should factor that in. Also Dental insurance is not provided by Medicare - so you should look at whether you want or need insurance for that.

    This article has some ideas about saving money in retirement: http://www.newretirement.com/Services/Reducing_Expenses_to_Insure_Retirement_Security.aspx

    You can explore Medicare Supplemental Insurance here: http://www.newretirement.com/supplemental-health-marketplace.aspx

  • Login to rate this answer:   Answered on 3/16/2014
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.