5 Expenses Most Retirees Still Underestimate in 2026 That Could Cost Them Thousands

Core Insights - Retirement budgets often appear manageable initially, but unexpected costs can arise over time, leading to tighter financial situations than anticipated Group 1: Underestimated Expenses - Healthcare costs are rising faster than inflation, with retirees often failing to plan adequately for these expenses, including premiums and out-of-pocket costs [2][3] - A 65-year-old couple retiring today may need over $172,000 to cover lifetime medical expenses, excluding long-term care [3] - Long-term care and in-home assistance can be financially destabilizing, as Medicare does not cover custodial care, leading to significant monthly costs [3][4] Group 2: Housing and Insurance Costs - Housing costs extend beyond mortgage payments, with ongoing expenses such as property taxes, insurance, and maintenance that can accumulate [5] - Modifications for accessibility due to health issues can lead to steep costs, compounding financial strain [5] - Insurance premiums for auto and home are increasing at double the rate of general inflation, which can catch retirees off guard [5]