Darcy Bergen is the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. He has over two decades of experience as a financial planner helping his clients plan for retirement and other financial needs. When it comes to retirement, many of his clients come to him with very little knowledge of how to prepare for retirement. His clients receive one on one advice tailored for their needs, but it’s a passion of his to provide guidance for everyone. Darcy Bergen offers a quick guide to reference when creating a retirement budget.
According to Darcy Bergen, when budgeting for retirement, individuals need to keep in mind that their healthcare needs will change. The medical care people need a few years into retirement is not the same as they need in the first couple of years. Although eventually retired individuals will get coverage under Medicare and other supplemental insurance, their premiums or out of pocket will increase. They must make a budge to cover all of these expenses.
Cost of Living
Many retired individuals have the fortune of having a home that is paid for. However, Darcy Bergen mentions that not everyone is this lucky. Those individuals who have to pay for a mortgage or rent need to keep in mind housing possible housing expenses when planning for retirement. Even if their house is paid for, retired individuals still need to make a budget for unexpected and standard repairs.
During retirement, most people cut down their transportation expenses to a minimum since they no longer need to pay for daily commuting costs. However, this doesn’t mean transportation costs will cut down to zero. Those people who plan to keep their vehicles still need to keep maintenance costs in mind.
Darcy Bergen mentions that although many retirees cut back on their social life and don’t eat out as much, other individuals do enjoy the freedom of having more time to eat out. Whatever their preference is, people budgeting for retirement need to keep food expenses in mind. Also, their overall health will determine how much they will have to spend on food. Those dealing with health issues could end up spending more money on special meals to accommodate possible food sensitivities.
Although many retirees dream of traveling the world during their golden years, not all of them have the opportunity to do it. Those individuals who plan on traveling during retirement need to decide what the extent of their travel will be. Budgeting and setting realistic travel expectations will set them up for a prosperous retirement, according to Darcy Bergen.
For more of Darcy Bergen’s financial tips on life insurance and other concerns, check out the rest of his blog https://darcybergen.xyz/posts/.