Planning for retirement isn’t easy, especially when there are so many costs to consider. Not only do you need to think about your general living expenses, but you’ll also need to plan for any travel or vacations, hobbies and entertainment, and healthcare and medical costs.
There’s one expense in particular, though, that can bust your budget wide open. And if you’re not planning for it, it could cost you nearly a quarter of a million dollars.
The major expense you may not be planning for
There are plenty of costs to prepare for in retirement, but there’s an incredibly expensive one you may not even be considering right now: Long-term care.
Nobody wants to think about the final years of their life before they’ve even retired, but because long-term care can be incredibly expensive, it’s a good idea to start planning for it now.
The average semi-private room in a nursing home will run you about $6,844 per month, according to research from the U.S. Department of Health and Human Services. That adds up to a whopping $82,128 per year.
In addition, among those who require long-term care, the average person needs it for around three years. If you spend three years in a nursing home that costs $82,128 per year, that comes out to a total cost of $246,384.
Read More: Don’t Let This $246,000 Mistake Derail Your Retirement | Personal Finance