RETIREMENT COSTS

More Costs of Retirement Concerns

Save enough for Living Expenses

From a recent U.S. News Money article, the following are the rest of a list of costs that could rise in retirement, and that need to be planned for:

Prescription drugs – This is probably one of the most worrisome areas for seniors, so if you are having problems understanding all the options available for Medicare Part D prescription drug plans, ask for help from family members or a professional.

Long-term care – Medicare Part A only covers the first 20 days of care; after that, you will have to pay $138 for the next 80 days and then cover everything yourself after that.

Household assistance – Many seniors need extra help with yard work, shoveling snow and general maintenance work around the house.

Taxes – After retirement, you will need to pay income tax on traditional IRA and 401(k) distributions. After age 70 ½, you also need to be sure you take the required minimum distributions or you will be hit with a 50 percent tax penalty on the amount that should have been withdrawn.

Gifts – Holidays and birthdays don’t stop coming just because you are retired. You will need to include a line item in your retirement budget for these items or plan for other ways to celebrate by giving your time or involvement in inexpensive activities with grandchildren.

Even more reason to use a Private Asset Trust. Retirement shouldn't be a poor existence.