Prior to retirement much of your disposal income went for items such as home mortgage, car loan and your children’s
education. In your pre-retirement budget these items were so significant as to mask many smaller expense items.
Once the major pre-retirement expenses are diminished or gone, as they need to be in retirement, other items will gain significance.
We’ve already discussed, earlier in this section, the major retirement expenses for income taxes, property taxes, health
care, and long-term care. Health care and long term care have two components – the money spent for any day-to-day
expenses and the money spent for insurance to protect you from major future costs.
Other than taxes, insurance will consume the majority
of your retirement income. You will find yourself spending a greater and greater share on the following:
With this amount of protection from all possible perils, you certainly ought
to feel safe and secure.