Do you know what to expect after retirement? Many people don’t and are in for a surprise when they finally retire. In this blog post, we will discuss the 17 biggest retirement surprises that people experience after retirement. We will also provide advice on how to deal with these surprises!
Many of us are thinking about our futures and preparing for retirement. However, opens in a new windowaccording to a 2020 poll, 41 percent of Americans report, that their ability to be financially secure in retirement will “require a miracle.”
- You may have trouble adjusting to the lack of structure in your life. Try to get involved in volunteer work or other activities that keep you busy throughout the day.
- Having a plan is important, but also be flexible and adaptable.
- The biggest surprises after retirement are the high costs of medical care, travel and home.
Seniors Will Be Suprised The By High Costs
The high costs of living during retirement can be quite a shock for many seniors. This is especially true if you are used to living on a fixed income.
The opens in a new windowaverage yearly expenditure for a retired household is $7,492, while the average active U.S. household spends $10,742 yearly.
1. Downsizing My House Didn’t Bring Me A Windfall
It’s easy to look at the downsizing movement and think, “Hey, if I sell my house, I’ll be able to buy a nice condo in Florida.” But that’s not how it works. The truth is that selling your house doesn’t mean you’ll get all of the money back. You’ll have to pay for the cost of moving, for example, and then there are still expenses like taxes on the sale and closing costs when you buy your new home.
So what should you do if you’re downsizing your home but don’t see a lot of extra cash coming in? Consider using some of the money from selling your house for something else—like starting a business or paying off debt—instead of taking it all out at once.
2. Medicare Costs More Than I Thought
One of the biggest surprises after retirement is how much more Medicare costs than we thought. It’s not just a few dollars here and there; it can be hundreds of dollars a month, depending on how much medical care you need. If you need a lot of medical treatment, or if you have medical conditions that require ongoing treatment, this can be a major shocker when it comes to budgeting for retirement.
How to handle it? Well, the key is to prepare yourself before retirement by saving enough money to cover your health care costs. Make sure to set aside money each month so that you can pay for these higher costs without having to cut into important expenses like food or utilities. This will help ensure that you have the funds available when they’re needed most!
3. You Will Have To Pay Out Of Pocket For Many Health Care Expenses
You could be shocked to learn that, after retirement, you will be paying a significant amount of your health care costs out of pocket. Medicare does not cover everything, and if you’re on its parent program, Social Security, you won’t have any more choices. If you don’t want to pay for health care later in life, prepare for it by putting money aside in a separate account or contributing to an HSA.
4. The Impact Of Inflation In Retirement Is Greater Now
Retirement is a time of freedom from the daily grind, but it can also be a time of financial insecurity. If you’re not prepared for the impact of inflation in retirement, you could end up with less money than you planned for.
Inflation is defined as the rate at which prices increase over time. While inflation can be good for an economy as it encourages people to spend more money and boost the economy, it can also make retirees feel like they don’t have enough money to live on. When you retire, your expenses will likely increase while your income will probably decline or remain the same. This means that even if your investments grow at a healthy rate, they won’t be able to keep up with inflation over time.
5. My Tax Bill Went Up In Retirement
How did your benefits manage to go up when you were convinced they would drop? One potential explanation: You miscalculated and didn’t take into account that a percentage of your Social Security could be taxed. “Many retirees are taken aback by this,” says Paul Staib, a financial planner from Highlands Ranch, Colo. “They see it as double taxation and get angry about it.”
If you are filing jointly as a married couple and your income falls between $32,000 and $44,000, 50% of your benefits will be taxed. However, if your income is above $44,000 joint filers see 85% of their benefits being taxed. (You can find more detailed information in Publication 915 at opens in a new windowIRS.gov)
The best way to avoid the tax torpedo is to start tax planning early. “Keep in mind that at some point the government is going to want its share of taxes,” says Mark Astrinos, a San Francisco CPA financial planner and member of the American Institute of CPAs Personal Financial Specialist Committee.
6. Time Is More Valuable Than Money
It’s easy to get caught up in the idea that retirement means you’ll have all the time in the world to do whatever you want. But if you’re not careful, it can be easy to let yourself get sucked into a life of endless relaxation, which isn’t necessarily a good thing.
If you have too much free time, it can lead to boredom and depression. You’ll start feeling like you’re wasting your life away, even though you’re not doing anything wrong at all! On top of that, having too much free time can make it harder to get out of bed in the morning when you want to go back to work or start working on something else.
So here’s the thing: instead of spending your days lounging around in your pajamas eating ice cream sundaes for breakfast every day or watching reruns of The Office for hours on end (or both), try taking advantage of some free time by doing something productive with it! You don’t have to work on a big project; just find little things that need to be done around the house, or volunteer at a shelter or animal shelter if it sounds more appealing than cleaning toilets (it does me!).
7. Unforeseen Events Can Really Throw A Wrench In Your Plans
We all know that retirement is a big deal, and it’s important to plan ahead. But what happens if something goes wrong? Maybe you don’t have enough money, or maybe you don’t want to go through with it after all. Whatever the case may be, unforeseen events can really throw a wrench in your plans.
What should you do if this happens to you? Should you just give up and accept whatever fate has in store for you? Absolutely not! We’re here to help you get back on track with these three tips:
1. Talk About Your Concerns With Someone You Trust
2. Don’t Give Up On Retirement Just Yet—You Have Options!
3. Try Something New To Keep Yourself Busy
8. Health Care Costs Are High For Early Retirees And Getting It Is Difficult
One of the biggest concerns for early retirees is how to pay for health care. Unfortunately, this is one area where there are no easy answers. Health care costs are high, and they’re only going to go up in the future. And if you’re not 65 years old, you’re not eligible for Medicare premiums.
This means that you’ll have to either pay for health care out of pocket or purchase a private health insurance policy. Both options can be expensive, and it’s important to do your research before making a decision.
If you’re healthy and don’t anticipate needing much medical care, you may be able to get by with a less expensive health insurance policy. But if you have preexisting conditions or anticipate needing a lot of medical care, you’ll need to make sure that you can afford the premiums and deductibles.
What to do about it:
If you’re an early retiree, make sure you have a plan in place for your health care costs so you don’t get caught off guard when it comes time to pay the bills.
9. A Home Repair Or Other Unexpected Emergency Can Wipe You Out
The biggest surprise after retirement is a home repair or other unexpected emergency can wipe you out. If you’re not prepared for this, it can be a big shock and a big problem.
What to do about it:
The best way to prepare for these out-of-pocket expenses is to set up an emergency fund. You should have enough money set aside to cover at least six months of expenses if you have no other income and can’t sell your house or car.
10. My Nest Egg Is Disappearing Faster Than I Thought
Retirement is supposed to be a relaxing time in your life when you can spend time with family and friends, travel, or make up for lost time on hobbies. But sometimes, the reality of retirement can be more stressful than working full-time. Retirement can also be a scary time when it comes to finances. You may have spent years saving up for retirement, but now that you’re there and no longer working, it seems like all of your money is disappearing faster than ever before.
What to do about it:
1. Consider all of the costs associated with investing, including taxes, fees, and other expenses. If you’re not sure what these costs are, ask your financial planner or accountant for help calculating them out so that you can make sure they’re factored into your overall plan for retirement savings.
2. Keep an eye on fees and expenses by tracking them carefully over time so that they don’t add up too much without your realizing it! This will help ensure that any unexpected changes in performance aren’t due solely to having too many fees eating away at your gains—or losses—over time.
11. Calculating Retirement Income Is Challenging
Retirement income is the most important factor in determining how well your golden years will turn out. While many people think of retirement income as a one-time payment, it can actually consist of several different sources including Social Security, pensions, and annuities. If you’re planning to retire soon, it’s important to take the time to calculate exactly what your retirement income will be so that you can ensure that you are able to support yourself and your family properly.
However, calculating retirement income is not as simple as just adding up all of your sources of retirement income. There are many things that can affect how much money you’ll receive each month so it’s important to consider all of these factors before making any decisions about your future financial health.
12. Retirees Should Be Careful Not To Overspend
Retiring is a big deal. It’s a time for celebration and reflection, but it also means that you have to start budgeting for yourself. If you spend all your money on fun things and don’t save for the future, then you’re going to regret it later. You’ll have no money left over for retirement and you won’t be able to enjoy life as much as you could have.
If this sounds like something that could happen to you, then here are some tips:
1) Start saving now so that when you retire, you’ll be ready!
2) Make sure that you’re saving enough money so that it will last throughout your life.
3) Find ways to save money on groceries or other expenses by shopping around or switching things up every once in a while (like going vegetarian instead of buying meat).
13. Long-term Care Costs More Than I Expected
When you’re retirement planning, it’s easy to think of the costs as being limited to your own needs. After all, you’ll be living off of your retirement savings and your Social Security benefits—you won’t be paying for anything else.
But in reality, one of the biggest surprises you might encounter is that long-term care costs more than you expected. To prepare for this possibility, make sure you’ve got a good long-term care insurance policy in place when you retire.
14. There Is A Real Risk Of Retirement Boredom
Retirement can be a wonderful time, but it also has its downsides. One of the biggest surprises after retirement is how quickly you can get bored. This is especially true if you have worked full-time for most of your life and had little opportunity to explore other things outside of work.
If you are planning on retiring soon and want to avoid getting bored, here are some tips:
1. Plan to keep busy with a hobby or activity that you enjoy. Examples include gardening, painting and drawing, playing cards or board games with friends and family members, volunteering at a local charity organization or soup kitchen, etc.
If you don’t already have something in mind then try searching online for ideas on what kinds of hobbies are available locally where you live and see what types of activities interest you most before making any final decisions about which one(s) might be best suited for your needs!
15. It May Not Be Possible To Work Longer
It’s a common misconception that you can work longer, but it may not be possible to do so if you have health problems.
If you’re planning to work longer, consider what kind of work would be best for you and your health. There are many jobs that don’t require much physical activity, but there are also jobs that are more physically demanding.
If working longer isn’t an option for you, consider retirement options that don’t include working. These options include taking classes or learning a new skill or hobby, volunteering at a local charity or organization, traveling with friends or family members, and spending more time with friends and family members who live close by.
16. It Is Becoming More Common For Retirees To Get Divorced
We all know that divorce is a big deal, but it’s becoming more common for retirees to get divorced. After all, retirement is a time of change. It’s when you’re supposed to have fun and relax, but sometimes it can be stressful too. You might be spending more time at home with your spouse than you did before and that can be hard on some couples.
So what do you do if you’re worried about getting divorced? There are many things you can do to make sure that doesn’t happen. One thing is to talk with your spouse about how they feel about retirement and what they want out of it. If they’re not happy with how things are going at home then maybe it’s time to consider counseling or therapy. That way you can figure out what’s causing friction between the two of you and learn how to fix those issues before they become bigger problems later on down the road!
17. Depression Is A Common Problem
When you’re retired, it can be hard to keep your mind off of the things that you used to do every day. You might be experiencing depression because you miss working, or because you have too much time on your hands. There are a few ways that you can deal with this problem and make the most of the rest of your retirement.
First, try getting involved with a community activity where you can meet new people. This could be anything from volunteering at a local organization or church group, joining an adult sports league, or taking up painting classes at a local art studio. It doesn’t matter what it is as long as it gets you out there and interacting with others who share similar interests as yourself!
If none of those ideas sound appealing then maybe instead try joining an online forum about topics that interest you such as gardening or cooking or even politics if those are topics that interest you! Or if all else fails then just go for walks around town and enjoy nature’s beauty while taking in some fresh air – which will help clear away those cobwebs from inside your head!
You could also try writing down things that used to occupy most of your time (for example housework) then once they’re written down then take some time each day to do something that’s just for you such as reading a book, taking a bath, or playing with your grandchildren (if you have any). It’s important to find things to fill up your time so you don’t dwell on the negative aspects of retirement and instead focus on all the great things that come along with it!
Careful Planning Pays Off
Retirement is a time of change, and it can be tough to adjust to all the new challenges that come along with it. But if you’re prepared for what’s ahead then you’ll be in good shape to enjoy your retirement years to the fullest!
One last piece of advice: make sure you have a solid plan in place for your finances. This includes having enough saved up to cover any unexpected expenses, as well as financial planning for how you’ll generate income in retirement.
If you’re not sure where to start, there are plenty of financial advisors out there who can help you create financial planning that’s tailored specifically for you and your unique needs! Just make sure to do your research and choose someone who you feel comfortable with and who has your best interests at heart.
You, Will, Make It Work And Be Quite Happy
After all, you have been working for decades. You know what it means to be organized, plan ahead, and be goal-oriented. You are not going to let retirement change that!
You’re going to make it work because it’s the only way you know how: by being organized and financial planning ahead. You will set up a schedule for yourself that includes your favorite activities, and then you will stick to it as closely as possible—even if it means waking up earlier.
You don’t want any surprises in retirement—and that includes surprises about your ability to adapt. Surprises are stressful, so keep them out of your life by being prepared ahead of time with a plan for how you’re going to handle them when they come around!
Biggest Surprises After Retirement FAQs
What do retired couples do together?
It’s a question that many people ask themselves when they’re planning their retirement. And while it’s true that many couples who retire often have different ideas of what they want to do, there are also plenty of options for couples who want to spend their time together. Here are some ideas that might help you find a new hobby or activity for the two of you:
1. Take up a new sport
You don’t have to be an athlete to enjoy doing something active with your partner. Whether it’s tennis, hiking, or biking, there is something out there for everyone! If you’ve always wanted to try something new but haven’t had the chance before now, this could be the perfect opportunity to give it a shot!
2. Take up a new hobby together
Hobbies can be very personal things—but if you find one that both partners enjoy then it can bring you closer together as well! Try something like fishing or hunting if your husband loves getting out into nature, or maybe cooking or baking if your wife loves being in the kitchen (or watching someone else do it). There are so many possibilities here—just make sure they’re safe ones that you’re both comfortable with!
What are fun things to do in retirement?
After a lifetime of working, we’ve finally made it to the promised land: retirement. Finally, you can do whatever you want! You can travel the world, read all of your favorite books, and learn new skills and hobbies—the possibilities are endless!
But what if you don’t know where to start? Here are some ideas for things that retirees have found to be particularly fun in retirement:
- Traveling the world (or even just a state)
- Learning a new skill or hobby (like gardening, or cooking)
- Taking up a new sport (like golf)
- Starting an exercise routine (like jogging)
- Learning how to play an instrument or speak another language
How can I relax and enjoy retirement?
It’s a question that many people have asked themselves, and it’s one of the biggest surprises after retirement: how can I relax and enjoy retirement?
We know that it can be hard to slow down after a lifetime of hard work. But we also know that it’s important for your overall health and happiness to take time for yourself. And we have some tips to help you do just that!
First, make sure you’re getting enough sleep. It’s easy to get used to sleeping less when you’re working full time, but this can lead to exhaustion and other health problems. Set aside enough time at night for eight hours of restful sleep every night—and if you need an extra hour or two, try reading a book or listening to music while laying in bed.
Second, start small with exercise. If you’re new to exercising or haven’t done much recently, start small with things like walking around the block or going on short bike rides every day. This will help build up muscles that will keep your joints healthy as they age.
Third (and most importantly), give yourself permission not to feel guilty about taking a break! Your body needs rest just as much as it needs activity—so don’t worry if you want to spend an afternoon watching TV or taking a nap. Just make sure you’re getting up and moving around regularly, too.
Despite this, planning for retirement is crucial. According to a 2020 survey, fewer than 44% of Americans reported that they have actually thought about how much money they will need to budget for in retirement. That’s why it’s important to start planning as early as possible and making regular contributions to your retirement fund.
If you haven’t started on retirement savings yet, don’t worry – there’s still time! But you will need to act fast. The sooner you start retirement savings, the more comfortable your golden years will be. So what are you waiting for? Schedule a free consultation with my team today and let us help get you on track for a happy and prosperous retirement.