Question

what expesnes are likely to increase during retirement?

Answer 1

The list of expenses that arr likely to go up in retirement are:-

i) Medical Cost- As you get old your immunity becomes weaker and you need to consult a doctor. So, there is more chance of getting sick in olf age and spending on medical facilities.

ii) Entertainment Cost- When you retire, you basically want to rest and spend your rest of the life in peace and enjoyment at home. So, your spending on your entertainment increases.

iii) Medicine- As you grow, you stay more on medication . So your spending on medicine also increases.

iv) Household help:- When you grow old, you might have to hire workers for the work which you could do earlier. Si, a part of expenditure consists of household help.

V) Taxes which were deferred earlier needs to be paid now. For eg:- Taxes on 401k plan