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3 Common Surprises for Recent Retirees

Filed under: Retirement

Retirement is when you get to do the things you’ve always wanted to do. This could mean spending time with friends and family, pursuing new passions or simply relaxing and enjoying the good life. But even though this is supposed to be your time to enjoy yourself, life is unpredictable. Sometimes retirement can surprise you, and not always in a good way.

Retirement planning is as much about being prepared for unexpected emergencies as it’s about saving money. While it’s impossible to predict the future, it’s possible to protect yourself from financial risks. If you’re nearing retirement, consider the three common surprises below, which might threaten your plans. Knowing how to deal with them might save you significant time and money and help you avoid considerable stress.


Medical Expenditures

Emergency expenses don’t stop just because you stop working. In retirement, this is especially true of health care costs. In a recent study, Fidelity found the average retired couple will spend $260,000 on out-of-pocket medical expenses.1 Additionally, it’s estimated that the average 65-year-old has a 70 percent chance of needing long-term care at some point.2

These expenses add up. And although Medicare will cover some of these costs, it won’t cover them all. It’s not a bad idea to have a plan to pay for the care that Medicare doesn’t include. One way to do so could be to build up an emergency fund, perhaps in your health savings account (HSA). Another option might be to purchase long-term care insurance. These policies can help offset the cost of extended care and might help you keep your savings intact.


Excessive Spending

You may think that after you retire, you’ll spend less money. But that’s not always true for retirees. With more time on your hands and more money to spend, you may find yourself depleting your retirement funds faster than you’d expected. The cost of traveling, shopping, dining out and expensive hobbies can add up if you’re not careful.

You might want to think about putting together a budget. This can help you identify where you’re spending your money. It can also help you think about which expenses are important and which ones you might be able to do without. There are also plenty of ways to enjoy yourself without spending money, such as volunteering or joining a club. Try to be creative and see if there’s a way to pursue your retirement dreams without breaking the bank.


Too Much Free Time

While the aspect of not working is appealing to some people, the prospect of a wide-open calendar doesn’t suit others. Some retirees are surprised to discover that they don’t enjoy their free time as much as they’d expected. They need a challenge to overcome or some goal to pursue. If that sounds like you, then you might want to find ways to fill your newfound free time.

You could consider transitioning into retirement slowly or moving to a part-time position within your company. You might even consider using your skills and experience to take up consulting or freelance work. Or you could use your talents to help out a charitable cause you like. Whatever you choose to do, it’s not a bad idea to have a plan in case not working doesn’t quite suit you.

Need help developing a budget and retirement spending plan? Let’s talk about it. Contact us at Ambrose Financial & Insurance Services. We can help you evaluate your objectives and needs, and then develop a strategy. Let’s connect soon and start the conversation.





This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

16359 – 2017/1/18