In retirement, one of the things to take into account is that you will generate new expenses that you did not have during your professional life. It is important to keep this in mind because we tend to think that in this period of life we will spend even less, but this is not necessarily the case.
Retirement is often seen as a period in which some important living expenses are reduced: for example, when the house is already paid for, fewer transportation costs because you do not have to go to work, and so on.
However, what needs to be taken into account in order to calculate the money you will need without losing your purchasing power, is the arrival of new expenses. Some of these may not even be on your mind yet.
Leisure-related expenses
Retirement today looks almost nothing like 20 years ago.
Not only are we living longer and longer and our life expectancy is increasing, but we are also living a better, more active lifestyle with more physical activity. This means that we are significantly increasing our physical, sports, and leisure activities.
If in the past, retirement was understood almost as a period of rest and relaxation, nowadays it is seen as a kind of second youth. During this process, all possible costs related to hobbies, leisure, travel, etc. must be taken into account.
Health-related expenses
There is a common misconception that in retirement, health-related expenses are for curing and treating illnesses. Although this is also true, the costs related to prevention and wellness are becoming increasingly relevant.
When considering healthcare expenses in retirement, it is not only the health-related costs of medical treatment that have to be taken into account. More and more pensioners are looking for preventive measures and physical or mental wellness.
All of this leads to expenses such as preventive activities, wellness, meditation, mental health, and so on.
New personal challenges
If you have never thought about it, you will probably be surprised to learn that more and more seniors are pursuing different types of studies. From people who want to complete their unfinished studies to others who, for the pleasure of learning, are starting new careers or studies.
Today, this may seem a long way off, but it is a growing activity that has to do with the good physical and mental health in which retirees live today. Obviously, all of this results in a new spending model that was not even considered in the past.
The costs of training and education for retirement and, by extension, should be considered as another expense that could be very considerable during the retirement years.
Let us remember that education refers not only to conventional studies or qualifications, but also to courses, workshops, etc.