Retired man working on his laptop

Retirement should be a time to relax and enjoy the fruits of your labor. But without proper planning, you may find yourself caught off guard by expenses you didn’t foresee. As you prepare for retirement, here are seven things you might forget to budget for, but definitely shouldn’t.

Healthcare Costs Beyond Insurance

Person sitting in a chair donating blood
Image Credit: ESB Professional via Shutterstock.

Most people know they need to account for health insurance in retirement, but even with coverage, medical costs can skyrocket. Prescription medications, dental care, and long-term care services can be expensive. It’s important to set aside extra funds for these unforeseen healthcare costs so you’re not left scrambling when the bills arrive.

💸 Take Back Control of Your Finances in 2025 💸
Get Instant Access to our free mini course
5 DAYS TO A BETTER BUDGET

Home Repairs and Maintenance

Man sitting on a ladder with his head in his hands looking upset
Image Credit: Neirfys via Deposit Photos.

If you own a home, you know that keeping it in good shape requires ongoing maintenance. Roof repairs, appliance replacements, or even just routine landscaping and cleaning can add up. Make sure to budget for these home upkeep costs so you can avoid using emergency funds or dipping into your retirement savings when these expenses pop up.

Travel and Leisure Activities

Woman traveler taking rest at hotel
Image Credit: Shutterstock.

Many retirees dream of traveling the world or spending more time on hobbies. Whether it’s a trip around the globe or a weekend retreat, these activities can quickly add up. Make sure to plan for regular travel or entertainment expenses so you can enjoy your free time without worry.

Taxes on Retirement Income

401k paperwork sitting on desk with a pen
Image Credit: Garyphoto via Deposit Photos.

Many people assume that retirement income is tax-free, but that’s not always the case. Whether it’s income from pensions, Social Security, or 401(k) withdrawals, you could be facing a tax bill. Be prepared by setting aside money for taxes, especially if you’re withdrawing from tax-deferred accounts, to avoid surprises down the road.

Inflation

Young woman shopping in the produce aisle
Image Credit: Sofiiashunkina@gma via Deposit Photos.

Prices tend to creep up year after year, so what you spend today won’t always match what you’ll need tomorrow. If you’re only planning with current costs in mind, your money may not go as far down the road. This matters for everything—groceries, bills, even doctor visits. When thinking about retirement, add in a buffer for rising prices. This simple step gives your savings more staying power and helps make sure your fund keeps up with real life, no matter how long you need it.

Gifts and Family Support

White sprinkle birthday cakes with a topper that says 'happy birthday'
Image Credit: Ruth Black via Shutterstock.

Many retirees want to help out their loved ones, whether it’s buying gifts for birthdays or offering financial support to children or grandchildren. These costs can be harder to predict, but can easily add up. If you plan to contribute to family expenses in retirement, be sure to budget for it so it doesn’t stretch your finances too thin.

Unexpected Emergencies

Man checking the oil level in his car
Image Credit: IgorVetushko via Deposit Photos.

Emergencies happen, and in retirement, they may feel more stressful without the cushion of a regular paycheck. From an unexpected medical emergency to needing to fix a broken-down car, it’s crucial to have an emergency fund in place. Having money set aside for the unexpected can help you avoid using your retirement savings for something unplanned.

Pet Care Costs

Dog in crate
Image Credit: Shutterstock.

Many retirees enjoy having pets to keep them company, but pet care costs are often overlooked when budgeting for retirement. Vet bills, food, and even pet insurance can add up quickly. If you have pets or are thinking about getting one, make sure to include these expenses in your retirement planning to ensure they’re covered.

Keep These in Mind for a Secure Retirement

Retired couple walking through a mall carrying shopping bags
Image Credit: Monkeybusiness via Deposit Photos.

Retirement should be an exciting chapter in your life, yet there are a lot of things that can go unaccounted for in your budget. By planning for the unexpected, you can ensure that you’re not caught off guard by any surprise expenses. Being proactive now will let you enjoy the retirement you’ve worked so hard for, without the stress of financial uncertainty.

12 Budgeting Hacks Retired People Swear By

Retired, mature man paying bills at his table
Image Credit: AndrewLozovyi via Shutterstock.

Planning your retirement budget is about more than saving money—it’s about making your dollar stretch while living comfortably. With fixed incomes becoming the norm for many retirees, knowing how to manage finances effectively can make your golden years stress-free. From small daily habits to larger financial strategies, here are 12 budgeting hacks retirees trust to manage their money wisely without sacrificing quality of life. 12 Budgeting Hacks Retired People Swear By