Five costs you may have forgotten if you think you have saved enough

2. What it may cost to maintain your house or cottage:  If you have to hire help to do the chores you used to handle, costs may skyrocket.  House maintenance can be a major expense. It may be nickels and dimes when you are alive. If someone else has to do it because your health doesn’t allow it, the bills can mount up, especially if maintenance was deferred in a period of illness or old age.

3. Costs of running a small businesses: If you’ve done it all and others who take your place will have to hire staff, tradespeople and managers, then you should make provisions in in your retirement budget or will which anticipate the costs. Without such attention, the asset could become a money pit that winds up requiring costly subsidies out of your pocket.

4. Inflation:  Anyone who remembers the 1970s and the early 1980s when prices rose at double digit rates knows that our present rate of inflation in the low single digits may not last. Retirement budgets that get most of their cash flow from low yield Guaranteed Income Certificates and Canada Savings Bonds will lose purchasing power over time.  To pace inflation, you need common stocks or other assets that can generate higher incomes over time. Otherwise, a retirement that starts out adequately funded can leave you poor after decades of inflation.

5. Money to help children or grandchildren purchase their own homes: It can come out of retirement savings or be included in wills. It will be a gift unlikely to be forgotten, even if it is not strictly your own cost of living.

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