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you could anticipate regular expenses, such as property taxes and groceries.
However, its hard to anticipate every expense.
Here are some of the common unexpectedcosts you could have in retirement and how to handle them.
For example, your adult child could lose their job while supporting a family of three.
Teaching your adult children about money can reduce the likelihood of them having to ask you for money.
Its good to discuss finances with your adult children to gauge where you may be needed.
Knowing in advance when your adult child is planning a significant financial move gives you more time to prepare.
Car and Home Repairs
As things get older, they tend to need more maintenance.
Your home and car are no exceptions.
As cars accrue more mileage, they need more frequent checkups with the mechanic.
Furthermore, a house can need some fixes as it gets used.
Some repairs are necessary due to basic wear and tear.
However, acar or propertycan get damaged in a storm, by individuals or in another event.
These scenarios are more difficult to anticipate, but you might plan for basic repairs.
Its also good to address small issues before they become big ones.
Storing money in an HSA account can give you a nest egg for these costs.
Plus, HSA accounts have many tax benefits.
Some medical issuescant be avoided, but its also crucial to prioritize your health.
Income Taxes
You still have to pay income taxes even if you arent working anymore.
Thats because your Social Security distributions are subject to taxation.
Retirees can reduce their taxable income by capitalizing on the standard deduction.
Since youre retired, its unlikely that youll haveenough itemized deductionsto exceed the standard deduction.
However, itemized deductions may be the better path for some individuals.
Income taxes also vary for each state.
Thats why many retirees move to states withno income taxes.
Long-Term Care
Some retirees go to assisted living facilities when they can no longer live alone.
And its important to be prepared for this expense should it arise.
Having an assistant visit your property could save money compared with going to a facility.
you’re free to also decide how much care you need.
Some people need 24/7 care, while others dont need as much.
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