Cortburg Speaks Retirement

Hidden Retirement Costs That Can Derail Your Plan

• Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2025 • Episode 251

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Retirement expenses go far beyond housing and travel. In this episode, Miguel Gonzalez, CRC, reveals the most overlooked retirement costs—like medical bills, taxes, and inflation—and how to plan for them now.

Cortburg Retirement Advisors is a boutique financial planning firm committed to helping you grow, protect, and preserve your assets from your first job to retirement. We specialize in wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning to navigate any economic climate.

Miguel Gonzalez, a Retirement Specialist with 20+ years of experience, offers expertise in retirement income planning, investment management, and retirement plan design. With an MBA from Columbia Business School, and professional experience with JP Morgan Chase, Merrill Lynch, and more, Miguel is a trusted advisor for his clients.


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Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

This week, we’re diving into a topic that doesn’t get enough attention:

The hidden costs of retirement that no one talks about—but everyone should plan for.

When people think about retirement expenses, they usually think of the basics: housing, food, travel, and maybe a few hobbies. But in reality, there are a number of overlooked or underestimated costs that can derail your retirement if you’re not prepared.

Let’s explore what they are—and how to manage them.

1. Health Care and Out-of-Pocket Medical Costs

Even with Medicare, retirees can spend a significant amount on health care.

You may still be responsible for:

  • Monthly premiums for Medicare Part B, Part D, or supplemental plans
  • Deductibles and copays
  • Prescription drugs
  • Dental, vision, and hearing care—not fully covered by Medicare
  • Long-term care services or in-home help

According to Fidelity, the average 65-year-old couple retiring in 2025 could need over $350,000 just to cover medical expenses throughout retirement. That’s a staggering number—and one many people don’t see coming.

2. Taxes on Retirement Income

Retirement doesn’t mean you stop paying taxes. In fact, many retirees are surprised to learn that:

  • Social Security benefits can be taxable, depending on your income
  • Traditional IRA and 401(k) withdrawals are taxed as ordinary income
  • RMDs (Required Minimum Distributions) can bump you into a higher tax bracket
  • Capital gains from investments may still apply

If you haven’t planned for how withdrawals will be taxed—or if your income sources aren’t diversified—you could end up paying more in taxes than expected.

3. Inflation

Over time, inflation silently eats away at your purchasing power. Even modest inflation can have a big impact on retirees living on a fixed income.

Let’s say inflation averages 3% a year. What costs $50,000 today could cost over $90,000 in 20 years. If your income isn’t keeping up, your lifestyle could slowly erode.

Building inflation-protected assets into your plan—like dividend stocks, TIPS, or even real estate—can help preserve your standard of living.

4. Home Repairs and Maintenance

You may have paid off your mortgage—but that doesn’t mean homeownership becomes free.

Unexpected expenses like:

  • Roof repairs
  • HVAC replacement
  • Plumbing issues
  • Landscaping or snow removal

These costs can pile up—especially as your home ages or if you're no longer able to do maintenance yourself.

Make sure you have a separate budget—or an emergency fund—just for home upkeep.

5. Family Support

Retirement doesn’t always mean you’re financially independent from your family. Many retirees help out adult children, grandchildren, or aging parents.

Whether it’s:

  • Helping with college tuition
  • Paying for a grandchild’s braces
  • Supporting parents in assisted living

These costs can be emotional—and unexpected. It’s important to set boundaries and plan ahead for how much family support you’re willing (and able) to provide.

6. Lifestyle Creep

You finally have time to travel, dine out, or pursue passions—but those expenses can escalate fast.

  • That one trip a year turns into three.
  • That hobby becomes a full-blown side business.
  • That second home becomes a major monthly drain.

Enjoying retirement is important—but so is staying disciplined with your spending.

In Closing

Retirement planning is more than just growing your nest egg—it’s about understanding and preparing for the full financial picture.

By planning for the hidden costs, you can create a more realistic—and resilient—retirement strategy.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

CRC conferred by The International Foundation for Retirement Education.


 Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.
 
 

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.
 
 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
 
 

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

 

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Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

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