5 Expenses Retirees Should Plan for Before They Need Them

The paychecks stop in retirement, but the bills still keep coming; even worse, some arrive with no warning at all.

MoneyLion talked to three financial professionals to find out the costs that most often catch retirees off guard — and how to get ahead of them ASAP.

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1. Big Repairs and Replacements

The shock usually isn't one expense but how fast surprises stack up, according to Dan Krivos, wealth management advisor with Reveal Financial Group, Northwestern Mutual. It's no surprise that a new roof, a replacement car or an unplanned medical bill hits harder without a paycheck to absorb it.

"That's why I encourage clients to anticipate larger purchases and set aside accessible savings for unexpected costs," Krivos said.

2. Helping Family

Financial help for loved ones is another cost Krivos sees overlooked. Covering part of a grandchild's education, chipping in on a down payment or helping during a setback can add up over the years.

Rob De Lessio, director of lead advisors at Strategic Wealth Designers, sees that generosity as a goal worth funding once the basics are covered.

"Once those pieces are in place, I don't believe retirement should be about constantly finding reasons not to spend your money," he said.

3. Healthcare, Including Long-Term Care

Medicare still leaves retirees covering a whole slew of costs, including premiums, deductibles, prescriptions, dental care and more. Krivos recommended building a personal healthcare budget based on your age, health history and coverage rather than leaning on one national estimate.

"As a general benchmark, a healthy 65-year-old couple retiring today should be thinking about healthcare expenses potentially totaling $350,000 or more throughout retirement," De Lessio said. That figure doesn't include extended long-term care, which Medicare generally won't cover.

For couples, a nursing home stay raises its own questions. Jeffrey Goodrich, founder of JCG Private Wealth Management and a professor at UCLA, explained that Medicaid may cover a spouse's care, with eligibility set by each state. The spouse still living at home can usually keep up to half of the couple's assets, depending on state rules.

4. The Real Price of Aging in Place

Staying home isn't automatically the cheapest option. Krivos pointed to stairlifts, bathroom renovations and paid help with cleaning or transportation as costs that pile up quickly.

De Lessio has seen the biggest surprise firsthand in his own family, which is in-home care.

"When you need someone coming into your home to provide care, you're often limited by who's available in your area, what level of care they can provide, and what they're charging," he said.

Family can ease some of that load. Goodrich suggested relatives help review contractor bids or fill in when a caregiver doesn't show, and he noted some retirees eventually move to cut home maintenance or live closer to grandchildren.

5. Inflation

Rising prices are a cost that never shows up as a single bill. De Lessio put the math plainly, noting that "even at a relatively modest 3% annual inflation rate, the purchasing power of a dollar is cut roughly in half over 24 years." He also warned against parking large sums in low-yield bank accounts beyond a reasonable emergency fund.

Krivos favored a mix of reliable income sources and growth investments, plus regular budget check-ins. Goodrich pointed to tangible assets such as metals, real estate and materials, which he said have shown the strongest link to inflation over the past 50 years.

Bottom Line: Protect the First Five Years

Goodrich's rule of thumb is to cover 100% of essential expenses for the next five years through cash reserves and predictable income like Social Security, pensions and required minimum distributions. That way a market dip doesn't force you to sell long-term investments at a loss. Krivos added that watching your tax bracket on larger withdrawals helps too.

In Krivos' view, retirement planning "isn't just about reaching a savings goal. It's about anticipating changing needs and maintaining the flexibility to adapt along the way."

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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