It’s a topic that nobody likes to breach, but if you want to approach “maturity” with as much financial preparation as possible it’s one that you need to think about. Growing old is often associated with all of the stereotypical ailments that accompany advancing years. Something that is rarely associated with it is the hidden costs. Today’s post isn’t about pensions or any other windfalls that you might be banking on as you near retirement. Instead, we are going to focus on the hidden costs – the ones that nobody thinks about, yet still need to be taken into account.
Unfortunately, there are some morbid elements to this article. One of these is funeral costs. Like it or not, we are all going to have one, and the average cost can stretch into the thousands. This bill tends to be picked up by your next of kin, so it’s all about reducing their expenses when the time does come.
On the plus side, there are ways in which you can comfortably lessen the blow. Pre-paid funeral plans are now readily available and as they strip out the inflation-factor, they can make funerals much more affordable.
Elderly care costs
This is something that most of you will probably have been expecting, mainly because it’s been all over the news over recent years. In short, the cost of caring for the elderly is spiralling out of control – and more and more families are struggling to afford it.
It’s something that most people don’t bat an eyelid to in their younger days; they don’t think that the time will ever come where they can’t look after themselves. However, it does, and once it does you will once again be left with a huge bill.
Your kids’ mortgage deposit
This next one isn’t necessarily going to affect you all, but studies have shown that an increasing number of parents are contributing to their children’s deposits for a house. Considering how quickly house prices are rising, we don’t need to tell you how much this can cost.
Of course, there are also a lot of parents that won’t do this. However, many realise that without this financial assistance, the next generation is going to struggle to get their foot on the housing ladder. As such, at least take it into account.
The cost of being at home
When you conclude your working life, you are not just saying goodbye to a salary, you are also saying hello to a wealth of costs at home. When you are sat in the office for eight hours a day, you take advantage of company facilities. We’re mainly focussing on heating and while you could broaden the net to cover the likes of water, the point we are trying to make is that you don’t need the heating on at home when you are tucked away in your heated work office.
Suffice to say, these benefits end as soon as your salary does. It means that as well as losing that income, you are left with an expense that also doesn’t seem to be getting any cheaper.