Day-to-Day Expenses
But retirement doesn’t mean you’d be home almost all the time. Having more free time would be the perfect occasion for you to catch up with friends over dinner, drive to meet them, or grab a coffee. Or even starting a new hobby like painting or dance classes.
If your grandchildren live nearby your house, there is a good chance for you to spend some time with them. The American Association of Retired Persons points out that 25% of grandparents spend more than $1,000 per year on their adored grandkids.
All these day-to-day activities require money so keep that in mind when you plan to estimate how much you will spend in retirement.