RETIREMENT ! Ha ! it is an exciting and significant milestone that many look forward to after years of hard work.  Are you ready for your retirement ? What do you anticipate during your retirement ? What do you expect , or rather, what do you know or didnt’ know about the cost involved during Retirement ?

Regardless what are your visions or what you anticipate your retirement would be …. well, life is unpredictable! Some imagine to be traveling around the world with their loved ones, some may imagine staying home with their grand children, while some dream to be doing “nothing” and just resting at home, entertaining themselves with their hobbies…Whatever you plans are and no matter how solid you have planned out your retirement funds, you may want to take note of some of these areas.

Let’s discuss about some unexpected expenses that retirees often face :

1. HEALTHCARE 

For many retirees, the cost involved in healthcare is often one of the most critical and crucial concern. Any unexpected illnesses can devastate the finance and the fund saved up for retirement. Even if you are in the pink of heath condition now, it is always good to have a separate amount set up to stand-by for healthcare. Besides all the regular medical check ups, it is advisable to have funding set aside in case nursing home is needed, special care, or treatments are required.

2. ENTERTAINMENT 

Well, you may not see the needs for entertainment while you are working now, simply because you are spending most of your days in the office. However, once you are in the situation where you are no longer need to be in the office, you will be having the additional 10 to 12 hours a day to yourself, and that is when you need activities to entertain and occupy your time with ! Whatever your entertainment or hobbies are, eating, watching TV, travelling, golfing, shopping, socializing etc etc cost money! With no regular income, think about the funding of these activities. Well, of course, you can still enjoy these activities, but just to be more cautious with the spending.

3. REGULAR EXPENSES

With proper financial planning prior to retirement, hopefully you have had your home loans, car loans, personal loans etc settled by the time you retire. Having to pay for regular bills without a fixed income like before may be a burden and worrying matters by then.

4. UNEXPECTED BILLS

Annual quit rent, car repair, tax matters, a much needed house maintenance or renovation etc may be some of the unexpected expenses that pops up and affect your regular monthly expenses calculations. Therefore, having a separate emergency fund is not a bad idea.

Well, many think that they have EPF / KWSP / investment / savings etc in place and need not worry much. However, the tips is to firstly determine what kind of lifestyle would you want to live and then identify the expenses required to achieve that kind of lifestyle, and well of course the cost of inflation needs to be calculated too! And, it is always good to over estimate what you need and be prepared for the worst.

In summary, being financially independent during your old days is not just about leading a debt free and living comfortable, it is also bout aging gracefully with dignity, pride and not giving burden to your loved ones.