Top Unexpected Expenses Retirees Face

The 2025 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald Research found that most Americans are confident that they have enough money for retirement. And 64% of workers and 74% of retirees believe they have enough savings to handle an emergency expense. But a recent survey by Senior List suggests that it’s not just emergency expenses retirees need to prepare for.

Read: More helpful personal finance tips

Discover: Inspiring stories from GenX and Boomers

Most Surprising Costs During Retirement

Senior List asked retirees about their most surprising expenses during retirement. As it turns it, it’s everyday expenses that are catching them off guard. Here are the top 10:

Medical and healthcare (27%)
Home repairs and maintenance (20%)
Groceries and food (16%)
Inflation and general cost of living (11%)
Insurance (9%)
Vehicle expenses (7%)
Utilities (4%)
Debt and credit cards (3%)
Rent and housing (2%)
Miscellaneous (1%)

Of these, inflation/cost of living, medical/healthcare expenses and home repairs/maintenance caused the most stress by far.

Managing the Most Stressful Surprise Retirement Costs

Realistic expectations about the potentially most burdensome retirement expenses and a strategy for managing them will help to keep these costs from derailing your budget.

Inflation and Cost of Living

The Department of Labor says you’ll need 70% to 90% of your current income to maintain your standard of living after retirement. You might have to increase your savings to meet that goal.

First, consider saving more in your employer-sponsored 401(k) account – ideally, at least enough to get your employer’s maximum contribution. You can contribute up to $23,500 in 2025, plus an additional $7,500 in catch-up contribution if you’re age 50 or older ($11.500 if you’re age 60 to 63).[irs] Contributions come from pre-tax income. Next, open or add to an individual retirement account, which is also tax-advantaged. You can invest the money to achieve a balance of risk and growth potential that you’re comfortable with. The maximum contribution for 2025 is $7,000, plus a $1,000 catch-up contribution if you’re 50 or older. After that, consider investing through a regular brokerage account, or saving money in a high-yield savings account or in certificates of deposit. These aren’t retirement accounts, but you can earmark them for retirement.

Medical and Healthcare Expenses

Retirees can expect to spend $165,000 on healthcare during retirement, according to a 2024 estimate from Fidelity – more than double what they expect to spend.

If you’re not yet retired, you can get a jump on future costs with a health savings account. You’ll need an eligible high-deductible health plan to qualify, but an HSA lets you save up to $4,300 in pre-tax income (in 2025). You can invest the money or simply let it earn interest. Growth is tax-free, as are withdrawals for eligible healthcare costs. After age 65, you can use the money for Medicare premiums and tax-qualified long-term care insurance in addition to healthcare expenses.

As you approach age 65, choose your Medicare options carefully. Original Medicare doesn’t cover everything, so you might want to select options such as:

Part D, for drug coverage
Medigap coverage to offset your costs under Original Medicare
Medicare Advantage (Part C), an Original Medicare alternative that includes Part D and adds coverage for several services Original Medicare and Medigap exclude

Your Medicare enrollment period begins three months before you turn 65 and ends three months after you turn 65. Start researching your options well in advance so you can apply as soon as you’re eligible.

Home Maintenance and Repairs

A good rule of thumb is to plan to spend at least 1% of your home’s value each year on maintenance and repairs. Adjust that amount upward for an older home or one that’s exposed to harsh conditions. Downsizing to a smaller home, or moving from a single-family detached home to a condo – or selling your home in favor of renting – could reduce maintenance and repair costs. If you intend to age in place, consider a home warranty. It could more than pay for itself over time by covering expensive electrical, plumbing, HVAC and major appliance repairs and replacements.

Top Unexpected Expenses Retirees Face

Most Surprising Costs During Retirement