Medical expenses, including insurance premiums, deductibles, and out-of-pocket costs, can eat into retirement savings, especially as you age and require more healthcare services.
Mortgage payments, property taxes, maintenance, and utilities can be substantial, particularly if you choose to remain in your current home or downsize to a smaller but still costly property.
Car loans, credit card debt, and other loans can consume a significant portion of your retirement income if not paid off before retirement.
Federal and state income taxes, as well as property taxes, can reduce your retirement income and limit your ability to sustain your desired lifestyle.
While travel and leisure activities are enjoyable, they can also be expensive and quickly deplete retirement savings if not budgeted for appropriately.
The cost of long-term care services, such as nursing home care or in-home assistance, can be substantial and may not be fully covered by Medicare or other insurance plans.
Over time, the purchasing power of your retirement savings may be eroded by inflation, leading to higher costs for goods and services.