Lots of older adults struggle for money when they retire and stop earning a wage every month. For that reason, it’s vital that you begin to create a rainy day fund as soon as possible. If you have a few thousand pounds in the bank when you reach the twilight of your life, there is a decent chance that you will manage to avoid some of the issues facing pensioners today. If you’re not convinced about the need to create financial plans for the future, just take a moment to read through this post. It highlights some of the unexpected costs you might encounter after you retire.
Health and medical-related costs
People living in the UK benefit from the National Health Service. That means they never have to pay for their treatment if they need a doctor or hospital appointments. However, when you reach the latter stages of your life, there is a reasonable chance that you will spend more time with medical professionals than ever before. That could mean you have to pay for lots of taxis to get you to your appointments. You might also have to pay for many different prescriptions every year, and the cost can soon mount. So, do yourself a favour and ensure you always have some spare cash in the bank.
The cost of care
Nobody wants to think about what might happen if they become incapable of caring their themselves. However, that happens to thousands of older adults every year due to sudden and unexpected events like suffering a stroke or heart attack. You might have to cover the cost of care at home if you need someone to come round and clean or do some shopping on your behalf. You might also have to leave your house and move into a care home at some point. Residential care costs thousands of pounds every year, and so you might force your children to forfeit their inheritance if you don’t have a rainy day fund to cover the cost.
The removal of state benefits and pensions
At the current time, people in their late sixties receive a state pension and many benefits from the UK government. However, many politicians campaign to remove those lifelines, and so there is no guarantee they’ll still be available by the time you retire. If you have lots of debt, you will struggle to survive. Considering that, you can’t rely on the state to provide for you when you reach the last years of your life. The way things are going, the government won’t give a single penny to you when the time comes. That is why you must have a nest egg stashed away that you can use in emergencies. Otherwise, your creditors might force you to sell your home.
You should now understand why it’s vital that you create a rainy day fund and keep some spare cash in your accounts. If you save only £20 per week from the age of 25 until 65; you will raise around £41,600! That should be more than enough to keep your head above water and top-up your pension. You might even manage to pay for some exotic holidays!