Step 2: Watch Out for Hidden Costs
Many retirees underestimate the “silent budget killers”:
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Health care and long-term care (Medicare doesn’t cover everything, especially assisted living or nursing care).
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Taxes on Social Security, pensions, and retirement account withdrawals.
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Insurance (home, car, supplemental medical).
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Inflation creep — that extra $50 a month at the grocery store adds up over 20 years.
Building in cushions for these expenses now can prevent painful surprises later.
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