There’s a bit of a disconnect for what exactly people need to set aside for retirement.
Housing payments, healthcare costs, even food expenses always seem to make the list, but the financial requirements for day-to-day transportation during the golden years tend to sneak by unnoticed.
The thing is, leaving these charges unaccounted for can eventually come back to bite you.
Especially when you consider the fact that transportation is the second largest cost during retirement!
If you haven’t already, it may be a good idea to reevaluate your savings and make sure you have the necessary funds to cover all your transportation needs once you’re free from work.
First off, it’s important to understand that transportation is not a choice, it’s a necessity.
Visiting family over the holidays, picking up groceries for the week, attending scheduled doctor appointments, going on vacation… the list goes on and on.
My point is that no matter how old you get, there will always be a demand to get from point A to point B.
That said, most people are under the impression that they will travel for less after they’ve retired since they’ll no longer have to commute to work.
This is not the case.
Statistics show that today’s retirees actually travel more than the previous generations.
During the 80’s, older individuals made an average of 1.8 trips per day. Now, this same demographic is making approximately 3.2 trips a day!
Interesting enough, this number isn’t too far behind the 21-35 year-olds who take about 3.4 trips daily.
But how does this all relate to preparing for retirement?
According to the Bureau of Labor Statistics, the top 5 expenses for people 65 and older are housing, transportation, health, entertainment and food, respectively.
Believe it or not, transportation is the second-most expensive category to keep up with during retirement.
Between fuel, maintenance, insurance and taking planes, trains or cabs, transportation costs the average retiree more than $7,100 a year!
But for whatever reason, this value usually gets overlooked and considered to be less of a priority in comparison to the other common expenses.
For example, healthcare is universally recognized as one of the steepest charges you’ll come face-to-face with during retirement.
However, it only adds up to about $6,300 annually…
Don’t let the cost of transportation catch you off guard and setback your future.
Keep in mind that getting yourself from point A to point B is second in the ranks for the most pricey retirement expense, so plan accordingly.