Big expenses retirees didn’t save for - but should have Experts and retirees identified six expenses that retirees should have saved more to cover, according to an article on TheStreet. The first was taxes. Thirteen states tax at least some Social Security income. Forty three states tax pensions. Also, the IRS will tax money withdrawn from a tax advantaged savings plan. Many seniors assume they will stop paying taxes when they retire, according to the article, but that's not true and budgets should be constructed with the tax man in mind. In addition to taxes, vacations and other fun activities are among big expenses that retirees usually fail to save for, according to TheStreet. Retirees should also consider dental expenses such as implants and dentures that may not be covered in dental insurance plans as well as hearing aids costs and other health care expenses that may not be covered in Medicare. Also, retirees should account for new car expenses every seven years until they reach 80 years old.
How to live a longer and happier retirement Retirees, who have enough income to live comfortably, can help others through volunteer activities to help raise their quality of life, according to this article on CNN Money. A previous study found that volunteering can help people reduce their risk of depression and raise their sense of well-being. It is also important for retirees looking for a longer and happier retirement to get a better grasp of their finances and spending to avoid unnecessary stress and anxiety, to build a solid social network and engage in social activities and to keep fit both mentally and physically.
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