This concern is not unfounded. The average retirement savings rate for Americans is only 10%, and many individuals struggle to meet even this modest target. The reasons behind this lack of preparedness are multifaceted and complex.

**A. Passive Income from Home Repairs**
**B.

These costs can quickly add up, especially if you’re not prepared. Home repairs and maintenance can be a source of passive income. By taking on small, manageable repairs and maintenance tasks, you can generate income while also improving your home’s value. For example, you could offer your services to neighbors, friends, and family. You could also advertise your services online or through local community groups.

Be Aware: Retirement Savings: 4 Expenses Retirees Regret Keeping in Their Budgets, According to Experts The Financial Needs of Adult Children Another unexpected cost that comes up in retirement for many points to the needs of retirees’ grown kids or other family members — and the guilt-laden obligation to provide for them. This one hits close to home for Nate Towers, CRPC, director and financial advisor at Five Pathways Financial. “My parents, who have been married for almost 47 years, met in October, got engaged in November, married in February, and had a baby nine months later in November,” Towers said. “Ever since then, they’ve only had about six months total without someone else living in their home.

“Whether it was adult children needing a temporary place to stay between homes or for other financial reasons, or my mom’s sister, who is single, aging alone and doesn’t have an effective retirement plan, living with them,” Towers said. This conundrum can strain finances in retirement, especially when you’re living on a fixed income. “The reality is retirees feel obligated to help family members, which can strain retirement savings,” Towers said. “One of the best things you can do is set clear boundaries and communicate your financial limitations with family members. A lot of people think retirees have a lot of money, but that’s not necessarily the case, so being upfront about this is key.”

This can include everything from airfare and hotel stays to concert tickets and restaurant meals. These expenses can quickly add up, especially if you’re planning to travel frequently or to more expensive destinations. For example, a couple planning a two-week trip to Europe might spend upwards of $5,000 on airfare alone, not including accommodation, food, and other activities.

“But as you approach retirement, you need to be more aware of inflation’s impact on your savings and investments.”

This statement highlights the importance of considering inflation when planning for retirement. **Here’s why:**

* **Erosion of purchasing power:** Inflation erodes the purchasing power of money over time. As prices rise, the same amount of money buys fewer goods and services.

Long-Term Care Lastly, prospective retirees often ignore the likelihood of needing long-term care that Medicare doesn’t cover. “This is one of those areas that’s kind of like talking to someone about healthcare in the future,” Towers said. “It’s like asking someone in July, ‘What are you going to do if you get a cold in December?’ Most people respond with, ‘I’ll figure it out at the time; I don’t need a plan right now.’” Unfortunately, the longer you wait to invest in it, the more expensive long-term care can become. “I’m not a huge fan of traditional long-term care products, but there are hybrid products out there where you can allocate assets to help cover care or utilize life insurance for long-term care purposes,” Towers said. “Regardless, having a plan is very important.

“Some people say, ‘Well, I have kids; they’ll take care of me.’ But the reality is that’s not a great long-term plan, because those kids will be aging, too, and the last thing most people want is to become a burden to their children. So again, take some time to think about these unexpected events and find a solution — a strategic plan that can help address these concerns.” More From GOBankingRates This article originally appeared on GOBankingRates.com: 5 Expenses That Catch Retirees By Surprise — And How To Prepare for Them