\n\t\t\t\t\tSome of the biggest costs of retirement are those that people don’t think about or prepare for, experts have warned\t\t\t\t\t <\/p>\n
Millions of people are under-saving for retirement<\/a>, new figures suggest \u2013 but experts warn there are number of \u201chidden costs\u201d of retirement that even the most diligent savers may not be prepared for.<\/p>\n The Government estimates that almost 15 million people are not saving enough to live on in old age, with retirees in 2050 on course to receive \u00a3800 less private pension income than today\u2019s.<\/p>\n This situation is being made worse by increasingly expensive costs linked to retirement such as moving into care homes or retirement villages, which come with hefty charges.<\/p>\n The i Paper has examined some of the biggest hidden costs of retirement and how you can prepare for them.<\/p>\n The cost of care<\/p>\n The average cost of residential care<\/a> \u2013 where you move into a care home \u2013 is around \u00a3949 per week, according to Age UK<\/a>, while living in a nursing home \u2013 which provides more round-the-clock care \u2013 costs around \u00a31,267 per week.<\/p>\n Over a single year, this could leave retirees facing a bill of up to \u00a365,884. Assuming you lived for just three years in this set-up, you would fork out almost \u00a3200,000.<\/p>\n It typically costs \u00a325 per hour to receive care in your own home, so assuming you receive care for around 26 hours of per week \u2013 the average, according to Just Retirement<\/a> \u2013 it would cost you \u00a3650 a week, or \u00a333,800 a year.<\/p>\n Greg Moss, a chartered financial planner at Eleven.2 Financial Planning, said it\u2019s a good idea to at least make sure you have some accessible cash to pay them at the beginning.<\/p>\n \u201cThe worst situation to be in is having a house, but no cash or investments to meet the cost or care,\u201d he said.<\/p>\n \u201cYou could end up having to sell your property below market value, while getting into debt. It\u2019s a horribly stressful situation to be in.<\/p>\n \u201cThe main thing to do is make sure you have enough liquid assets (easily accessible money) to fund care in the early stages. This will give you time to adjust your plans.\u201d<\/p>\n Natasha Etherton, chartered financial planner at Evelyn Partners, added that you may be able to take out an \u201cimmediate needs\u201d annuity to fund care costs.<\/p>\n \u201cThese are an insurance product that pay your care fees for the rest of your life, and they\u2019re available to anyone who is receiving care either in their own home or in a care home and is liable for paying for it,\u201d she explained.<\/p>\n \u201cHowever, they are only available through accredited financial advisers.\u201d<\/p>\n Retirement village fees<\/p>\n Retirement villages are becoming an increasingly popular choice for pensioners looking for an easier life.<\/p>\n These sites usually offer single-storey accommodation and include a number of communal services on site, such as restaurants and hair salons.<\/p>\n