{"id":9356,"date":"2025-06-24T00:29:10","date_gmt":"2025-06-24T00:29:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/9356\/"},"modified":"2025-06-24T00:29:10","modified_gmt":"2025-06-24T00:29:10","slug":"4-retirement-expenses-boomers-didnt-plan-for-but-should-have","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/9356\/","title":{"rendered":"4 Retirement Expenses Boomers Didn\u2019t Plan for \u2014 but Should Have"},"content":{"rendered":"\n

There are a few critical expenses that are often inevitable in retirement, and it\u2019s likely that many boomers didn\u2019t plan for them accordingly<\/a>. These expenses are now coming back to bite them.<\/p>\n

Read Next: The Money You Need To Save Monthly To Retire Comfortably in Every State<\/a><\/strong><\/p>\n

Learn More: How Far $750K Plus Social Security Goes in Retirement in Every US Region<\/a><\/strong><\/p>\n

What are they, and how can succeeding generations avoid these often innocent mistakes<\/a>?<\/p>\n

Patrice Williams-Lindo, CEO of Career Nomad<\/a>, saw just how painfully pricey long-term care for seniors can be while helping both her parents and in-laws navigate aging, illness and end-of-life care.<\/p>\n

\u201cI can tell you firsthand: the costs boomers didn\u2019t plan for aren\u2019t just financial \u2014 they\u2019re emotional, generational and systemic,\u201d Williams-Lindo said. \u201cMy family was quoted over $6,000\/month for quality assisted living in Georgia. Multiply that over a few years and you\u2019re talking hundreds of thousands of dollars \u2014 money most didn\u2019t save<\/a> because they assumed retirement meant rest; not round-the-clock care.\u201d<\/p>\n

High Yield Savings Offers <\/p>\n

Powered by Money.com – Yahoo may earn commission from the links above. <\/p>\n

Many financial experts, including Jay Zigmont, PhD, MBA, CFP, founder and CEO of Childfree Wealth<\/a>, agreed with Williams-Lindo that lack of long-term care planning among boomers \u2014 and younger generations \u2014 is among the worst and costliest mistakes.<\/p>\n

\u201cA year in a skilled nursing facility runs $115k, on average. Men will spend 2.2 years in care, and women 3.7,\u201d Zigmont said. \u201cWithout a plan to pay for long-term care<\/a>, the first person that needs care may cause their spouse to go broke.\u201d<\/p>\n

Long-term care, whether you pay out of pocket or with a long-term care insurance policy, is incredibly expensive, so it makes sense that so many boomers didn\u2019t bother.<\/p>\n

\u201cFor a couple that wants to pay out of pocket, I recommend setting aside $500k now,\u201d Zigmont said. \u201cIf you are single, you also need to set aside $500k. That may not make sense on the surface, but with a couple, your spouse often provides care for some time, making the total cost lower.\u201d<\/p>\n

Find Out: The New Retirement Problem Boomers Are Facing<\/a><\/strong><\/p>\n

A common unplanned for expense that Frederick Saide,\u00a0managing partner at MoneyMattersUSA, Advisory LLC<\/a> often sees coming back to haunt boomers is inflation<\/a>.<\/p>\n

\u201cI often get the response, \u2018That\u2019s not my problem,’\u201d Saide told GOBankingRates. \u201cThe assumption is retirement will not last all that long \u2014 certainly not 30 or more years \u2014 so \u2018I won\u2019t have to go through the inflation cycle three or four times\u2019 is the mindset.\u201d<\/p>\n

To guide clients, Saide uses the Society of Actuaries Calculator on longevity to help establish both individual and joint life expectancies.<\/p>\n

Story Continues <\/p>\n

\u201cWhat I want is an agreement on the time horizon to plan for; otherwise, we won\u2019t have a clear direction on how much money is needed to last<\/a>, and what the client wants their money to achieve for them,\u201d Saide. \u201cThis process is the reality check moment when I show from 2002 to 2023 inflation averaged 5.5%, nearly double the Fed\u2019s 2% target.\u201d<\/p>\n

Many boomers made the mistake of not looking too deeply into the fine print of Social Security and required minimum distributions (RMDs). Specifically, they didn\u2019t study the tax aspect<\/a>.<\/p>\n

\u201cUp to 85% of Social Security benefits can be taxed, and RMDs can nudge retirees into higher tax brackets, triggering Medicare surcharges,\u201d said Andrew Latham, CFP, content director at Supermoney.com<\/a>. \u201cRoth conversions in your 60s can help, but many wait too long.\u201d<\/p>\n

Did you make a will in your 40s and not update it to reflect your needs and wants in your 60s? A lot of boomers make that mistake.<\/p>\n

\u201cMany times, people adopt a \u2018set it and forget it\u2019 mentality when it comes to estate planning<\/a>,\u201d said Charles Nemes, co-founder and CEO at Nemes Rush Family Wealth Management.<\/a> \u201cThis can lead to significant damage to the relationships beneficiaries enjoy today, and potentially put money into their hands when it could actually hurt them more than help them. Unfortunately, estate plans seldom reflect the current feelings of those who drafted them years ago because so many things could have changed. For example, a beneficiary may have issues with drugs\/gambling\/alcohol, or is getting divorced, has a child with special needs, is getting sued, or is in a high-risk profession.\u201d<\/p>\n

Nemes recommended reviewing your estate plan at least every five years to be sure it clearly reflects your current knowledge and feelings about each beneficiary.<\/p>\n

More From GOBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 4 Retirement Expenses Boomers Didn\u2019t Plan for \u2014 but Should Have<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"There are a few critical expenses that are often inevitable in retirement, and it\u2019s likely that many boomers…\n","protected":false},"author":3,"featured_media":9357,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[631,64,10392,255,700,711,67,132,68],"class_list":{"0":"post-9356","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-boomers","9":"tag-business","10":"tag-frederick-saide","11":"tag-personal-finance","12":"tag-retirement","13":"tag-social-security","14":"tag-united-states","15":"tag-unitedstates","16":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114735517801436097","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/9356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=9356"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/9356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/9357"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=9356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=9356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=9356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}