It’s one of those periods that many of us just don’t decide to think about until the time comes – but like it or not, retirement does happen.
When it does happen, life changes. The general consensus is that the changes revolve around grandchildren and other happy activities, but it also changes from a financial perspective. You’ve had ‘x’ amount rolling into your bank account for the last few decades and suddenly, that stops.
Of course, a lot of people take the adequate precautions with pensions and investments to ensure that they’re not left in the lurch. Regardless, here is a refresher for some of the events that most people should plan for post-retirement.
They may have left home, they may have even got a job. However, don’t for one moment think that the time has now come in which the kids will no longer require the bank of mom and dad.
On the contrary, this is where the expenses really start to mount up. If they’re about to head off to university, there’s every chance that the standard loans won’t suffice and you’ll have to supplement their income in some way.
Then, it’s the housing ladder. As we all know, it’s an incredibly hard ladder to get on. There have been several studies which have suggested that parents are the most popular “lender” for first time home buyers – just to cover that first deposit.
Sure, you’re not obliged to cover these expenses, but for the modern-day retiree, this is the first which eats away at the savings.
Next, we’ll talk about something of a morbid topic. You may have only left work last week and have decades ahead of you – but the importance of planning for the big future shouldn’t be underestimated.
Unfortunately, it can cost a significant amount of money to pass away. We’re talking about thousands of pounds – the sort of figures that most families just can’t get to. It’s for this reason that funeral plans are surging in popularity. You pay for them in advance, and you’ll pay today’s rates. In other words, inflation doesn’t come into the equation – which can be pretty crucial if you’re planning to be around for the foreseeable future.
This time, we’re probably not talking about you directly, but maybe your parents. It’s about the retirement age when your parents will be starting to get into their advanced years and unfortunately, this might result in some form of health care.
This time, the expenses really can wrack up. Sure, the authorities might help you in some ways, but at the same time, a lot of people like to take matters into their own hands and invest in more advanced care. There’s no point putting hard and fast figures on this one, but we’ll just say that a few thousand might not suffice.
In the grand scheme of things, this might be one of the smaller expenses, but it’s something to be made aware of regardless. It’s a fact of life; as you get older, a lot of your insurance premiums will increase. You are more at risk, and the insurance companies will charge because of this. A lot will depend on the type of cover you have and what you are insuring – but don’t assume that you can stick to your ‘x’ a month forever.