4 Expenses That Will Disappear When You Retire

As always, the big question remain: How much money is enough for retirement?

Without a doubt, this is one of the toughest estimates to make when undertaking retirement planning. In fact, it is so difficult that people just save 70 percent of pre-retirement income.

Yet quite differently, there are a number of expenses that disappear when you retire, and here are 4 of them:

#1: Mortgage

One of the smartest goals that people should aspire to is to finish paying off your mortgage by the time you retire. While not many people are able to do this, those who are able to can reduce their expenses by a fair amount. Of course, this does not eliminate costs such as insurance and taxes.

#2: Retirement savings

For a number of people, almost 10 to 15 percent of their income is put away for retirement and once  they do retire, the elimination of this expense is a significant amount itself. As most people would know, this is a substantial expense that has to be included in your budget during the working years.

#3: Life insurance

By the time most people reach retirement, the dependents that they took out a life insurance for is pointless because these dependents are thriving on their own incomes. All that remains is a little expenditure for funeral costs and that can be done quite easily for a small cost too.

#4: Travel

Whether it’s parking, car maintenance or even gas, retirees can save a lot of money for obvious reasons. In fact, those who live in congested cities tend to save much more than others with an obvious example being New York City.