10 Overlooked Retirement Expenses You Need to Plan For

One of the biggest challenges in planning for retirement is trying to keep track of the nearly endless expenses you'll face once you've left the workforce. Most people are good about remembering their weekly or monthly recurring costs, like groceries and a mortgage payment. But all too often, less-common expenses, including those you pay annually or irregularly, slip through the cracks. Here are 10 you definitely don't want to forget about.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Inflation is not an expense unto itself, but it affects everything you'll purchase in retirement. The exact inflation rate varies from year to year, and there isn't an easy way to predict how this might change over time.

The typical rule of thumb is to assume a 3% annual inflation rate in your retirement planning. In some years, the inflation rate will be higher than this, and in other years, it'll be lower, so it all evens out.

ALSO READ: Do You Really Need $1 Million to Retire?

Most retirees will still owe federal and state taxes in retirement, but how much you owe will depend on how much you spend and where you withdraw your money from. You'll owe taxes on withdrawals from tax-deferred retirement accounts, like most 401(k)s and traditional IRAs, but Roth account withdrawals are tax-free, as long as you're at least 59 1/2 and have had the account for at least five years.

You can use the current tax brackets and your estimates of your retirement spending to predict what you might owe, but there's no way to know for certain until you're actually retired. Right before you leave your job, it's a good idea to look your retirement plan over again to be sure you can afford to cover taxes and all your other expenses.

Planning for emergencies in retirement is difficult because they are, by definition, unpredictable. There's no way to know when they'll arise or how much they'll cost. But often, you don't have any choice but to pay for them.

Make sure you include an emergency fund in your retirement plan to help with these costs. The typical advice for workers is to save three to six months of living expenses, but retirees may want to save a year's expenses or even more to be safe.

Home appliances inevitably break, and roofs need replacing. These are expenses you can plan for before you enter retirement so they don't wipe out your savings. Go through your home and think about the age of your appliances and what could fail within the next decade or two. Then, estimate how much these items will cost and include this in your retirement plan.

If you plan to make any upgrades to your home, you should also start budgeting for this in your retirement plan. The same goes for any redecorating or new, large purchases you plan to make.

ALSO READ: Do You Believe These Three Common Retirement Myths?

Cars require periodic maintenance to ensure they're running smoothly. Sometimes this can cost thousands of dollars. As you approach retirement, consider the age of your vehicle and think about the kind of maintenance it might need.

You may also want to purchase a new car altogether someday. In that case, factor the price of a new vehicle into your budget. Or, depending on where you live, you could consider ditching the car altogether.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

You'll still need auto, home, health, and possibly life insurance in retirement. These all have premiums and, in some cases, deductibles and copays. While the costs might change somewhat over time, you can use your current premiums as an estimate to figure out what you might owe in retirement.

If you plan to purchase a new vehicle or move to a new home in retirement, this could affect how much you pay for insurance. Be sure to keep this in mind when planning for insurance costs in retirement.

While Medicare covers a lot of the typical retiree's healthcare expenses, there's plenty it doesn't cover, too. Dental care, vision care, and hearing aids are just a few common expenses that Medicare doesn't cover.

It's possible to get insurance to pay for these extra services, but then you're usually looking at additional premiums, deductibles, and co-pays. However, this could still be cheaper in the long run than paying for these items out of pocket.

ALSO READ: Are You Missing Out on This Triple Tax-Advantaged Retirement Savings Account?

While not everyone will need long-term care, those that do will probably drain their retirement savings quickly. If you're worried about this, consider purchasing long-term care insurance for retirement. But you should note these policies can be expensive.

You could also set aside some extra money in your retirement plan to cover potential long-term care costs. If you don't end up using it, you could always pass it onto your heirs.

With people living longer, it's not unreasonable to think your parents could still be alive when you retire. If they run out of money, they could end up leaning on you for support. Some adult children also turn to the Bank of Mom and Dad when they need financial help.

It's natural to want to help, but you have to be careful about what kind of assistance you give so that you don't run out of money prematurely. If you believe you'll have to care for a family member in retirement, you may want to build an extra cushion in your budget for this.

Holidays and birthdays still happen in retirement, and they can cost quite a bit, depending on how many family members you have to buy gifts for.

Make a list of all the people you will have to buy presents for throughout the year and set a dollar limit for each so you know how much you can afford to spend on them. Then, multiply this by the number of years you believe your retirement will last, adding 3% annually for inflation.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If you forgot about any of the above expenses, that's OK. But it's probably a good idea to make some changes to your retirement plan before you actually quit the workforce. Go back through this list, note any costs you had forgotten, and redo your retirement plan to include them.

The Motley Fool has a disclosure policy.