Lifestyle Changes in Retirement that Will Impact Your Finances
Whether it’s escaping the 9-to-5 schedule or relieving yourself from the stress of running a business, most people look forward to the day they can leave the pressures of work life behind. But preparing for retirement comes with its own challenges.
Imagining life without the need to work sounds like a fantasy. Yet thousands of Americans trade in the working life for one of leisure. When they do, however, many quickly learn that certain lifestyle changes can impact their finances more so than they originally planned.
With more time to smell the roses, you may want to explore this great world of ours. If globetrotting is on your to-do list in retirement, make sure you have planned for the added expenses of transportation, lodging, and food. Travel costs can quickly chip away at even the most robust retirement accounts.
Enjoying time for arts, crafts, and hobbies is a great way to keep your mind engaged and explore your creativity. However, few activities are completely free, and with time on your side, it is easy to spend away hard-earned savings to feed your passion. From gardening to golf, budgeting for your favorite hobby is crucial before you retire.
Invariably, maintaining or improving your health will likely cost more in retirement than during your working years. As we age, our bodies demand more specialized attention, such as orthotics for running and walking. Eventually, you will require additional medical care, which Medicare or private insurance may not fully cover.
Planning for Retirement
Reaping the benefits from years of working is what retirement is all about. How we spend our time will tremendously impact how long our savings will last. So planning for retirement is not only about replacing income with retirement accounts but also ensuring there is enough money to enjoy what you’ve worked hard to achieve.