How much do you need for retirement? As Boomers age, more people than ever before are asking themselves that question and the frustrating answer is, it depends.
One of the benefits of living at Village Green Retirement Campus is that your costs are consolidated. Rather than worrying about mortgage payments, utilities, cable, yard service, housekeeping, meals and all the other costs related to home ownership, you pay one monthly fee based on the services you request.
In an earlier blog post we wrote about things you should consider when estimating what you’ll need in retirement. See that post here.
For many people, the cost of assisted living is less than they imagine. Getting the facts is the most important first step you can take in planning for a stress-free retirement.
Fortunately, once you reach the age of retirement there are some expenses that might actually disappear.
An article in the Huffington Post lists seven expenses you may be able to retire from your household budget:
Retirement savings. Finally, right? If you’ve been trying to sock away 10 to 15 percent of your income for your retirement, that’s money you no longer need to “spend” once you reach retirement.
Mortgage. Many people, particularly those who have lived in one home for 30 years or more, reach retirement with their home fully paid for (though there are still taxes and fees that must be paid). If that’s not possible in your situation, take heart. If you still owe money on your home and you itemize your taxes, you are getting a mortgage interest deduction.
Commuting. The cost of car upkeep, gas and parking is no small expense for most commuters, especially those who live in urban areas. While you’ll still have some car expenses, you should see a significant savings if you’re no longer commuting to and from work every day.
A second car. For many retired couples there is less need for a second car. Letting go of the second car means letting go of that extra car payment, insurance and maintenance. The second car might not be the first thing you ditch in retirement, but it’s an option when you look at ways to cut expenses.
Life insurance. Most retirees do not need life insurance. While there are exceptions, life insurance is typically to replace the income the deceased would have earned for family expenses. By the time most people reach retirement age they are no longer a primary wage earner for several dependents. If you want a small policy to cover funeral expenses, that should be relatively inexpensive.
Family expenses. Again, not everyone is so fortunate, but it’s possible that by the time you retire the largest share of family expenses for your children, from college tuition to car insurance to health insurance, will be things of the past.
Payroll taxes. If you are living off your retirement savings and have no earned income, your payroll taxes will disappear.
Not only do these disappearing expenses add up to significant savings, but they can simplify your life. And if simplifying your life appeals to you, you might be interested in the advantages of assisted living. Our staff at Village Green Retirement Center would be happy to answer any of your questions.