Start preparing for retirement expenses now

Crystal Faulkner

It is a common belief among our clients that their day-to-day expenses will go down during retirement. While this might be true to a certain extent, you might be surprised that some expenses will actually go up.

It’s true that you won’t be commuting to an office every day. You won’t need professional clothing and you may spend less on everything from entertaining to technology.

However, there are critical areas where spending is likely to rise during retirement, and you want to be prepared. These are potential budget drainers that can trip up individuals on a fixed income:

Tom Cooney with Wealth Dimensions
  • Inflation and taxes. Inflation is evitable. If you don’t plan for it, inflation could really affect your purchasing power over the coming years. Many pension plans don’t offer cost of living adjustments (COLAs), and $1,000 a month today isn’t going to buy as much 20 years down the road.  However, that doesn’t mean you’re doomed to less lifestyle.

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