Costs in Retirement

I was reading a book written by Daryl Diamond and he points out a few considerations that will change your income and costs in retirement compared to your working years. A few points worth noting are costs related to work disappear. Transportation, clothing specific to work,and meals and lunches if you ate out alot. Group insurance benefits (disability and life) are commonly terminated or at least reduced when someone leaves their employ. A key planning point to examine is which, if any , of those benefits may be appropriate to continue on an individual basis. Health considerations also enter into their decision. Someone in poor health may want to take advantage of the non-medical conversion option available in group plans. With the departure from employee benefit programs, the costs of dental care, some medical requirements, and prescription drugs fall to the individual. These costs can be quit high. All of these points should be considered when you are looking at your income needs in retirement.