However, the reality is that the family budget may change in a different direction: some expenses related to health, housing and care needs increase with age.
Medical examination and treatment costs
This may be the most unpredictable amount after age 60. When old, the risk of chronic diseases and the need to monitor health often increase, leading to examination, testing, medication, rehabilitation and other care expenses.
Therefore, just preparing monthly living expenses without allocating a separate amount for health can easily break the financial plan when unexpected illnesses appear.
Housing repair and renovation
Many people enter retirement age thinking that their houses are already available, so there are almost no major expenses left. But over time, houses, electrical equipment, water systems and other items all need to be repaired and replaced.
More importantly, when mobility is reduced, the house may need to be adjusted to be safer, such as adding handrails, anti-slip, renovating bathrooms, or changing walkways.
Long-term care costs
This is an item that many families often do not consider because they hope to always be healthy and be able to take care of themselves.
But as age increases, the need to support daily tasks such as eating, bathing, walking, or taking care at home may arise. This amount of money can last for months, even years.
Notably, long-term care costs are not always fully covered by health insurance or regular insurance programs. Therefore, families should plan in advance if a loved one needs regular care for them one day.
Travel and transportation costs
After retirement, gasoline costs or working expenses may decrease, but that does not mean travel expenses disappear.
When they get older, some people limit or no longer drive, thereby incurring taxi, technology car, relatives picking up and dropping off or other transportation services. Conversely, if they still use cars, maintenance, insurance and repair costs can also become a burden.
Expenditure data of the elderly shows that transportation is still a significant spending group, although the proportion often decreases in older age groups.
Living costs increase over time
Even without sudden expenditures, inflation can still silently reduce the purchasing power of savings.
Food, electricity, water, family services, insurance and essential goods can all increase in price over a long period of time. For retirees with fixed incomes, this impact is even clearer.
Therefore, financial preparation after the age of 60 should not only calculate enough money for a month or a year, but also consider expenses that may increase with age and time.
