Retirement planning is one of the major components of any financial plan. It allows you to build for the future based on your current circumstances.
While we can’t see the future with a crystal ball, what we can do is to plan for it.
Some of the most common retirement expenses one should plan for are:
Housing is a big expense no matter what stage of life you’re in. While the majority of retirees own their own homes, some still have to factor in mortgage or rent payments.
While you’ll no longer use your car for commuting to work, transportation is still a large expense. Insurance, gas, and repairs should be part of your budget. If you live in a city with public transport, see what senior citizen discounts you qualify for.
According to a report by Asia-Pacific Risk Center, an average of US$37,427 will be spent on healthcare for each elderly person by 2030. It’s important to note that MediShield Life doesn’t cover some health care expenses like dental work, glasses, hearing aids and long-term care.
As long as you aren’t planning on dining out regularly, your budget for food shouldn’t increase significantly. At the same time, you’ll have more time to cook meals at home.
How would you like to spend your retirement? Think about expenses for travel or even local entertainment like movies, museums, or concerts.