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Seniors may see some expenses eliminated during retirement 2010-05-17 After years of exhaustively planning for retirement, some Americans may end up with more income than they planned for, because retirees no longer have to factor many expenses into their finances, Forbes reports. One of the benefits of retiring is that seniors no longer have to contribute wages and earnings to retirement. For example, a worker who earned $70,000 per year and contributed the maximum amount to their retirement plan will have an annual contribution of $11,500 that will no longer be made, according to Forbes. Retirees who purchased a term life insurance plan may see their coverage expire, depending on the length of the policy. While it may be a good idea for some to maintain a life insurance policy for family or beneficiaries, others who no longer need coverage can expect to save thousands of dollars in premiums and fees, Forbes reports. Though retirees will undoubtedly save some money by no longer being responsible for certain expenses, they should still save the maximum amount possible in order to plan for unexpected financial emergencies. Budgeting for the unexpected may protect seniors from draining their retirement income in the face of a crisis.  |
