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The Five Biggest Stealth Costs in Retirement for Graybar Electric Employees

'Graybar Electric employees must remain vigilant about hidden costs in retirement, as unexpected expenses like health care, taxes, and inflation can have a real impact on their long-term financial well-being. Proactive planning and budgeting for these stealth expenses can provide much-needed peace of mind as they enter retirement.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Graybar Electric retirees often underestimate the impact of inflation and unexpected medical costs on their retirement savings. By planning for these stealth expenses and adjusting their budgets accordingly, they may avoid unnecessary financial strain and maintain a comfortable lifestyle throughout retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The five most common stealth expenses in retirement, including health care, taxes, emergencies, family-related expenses, and inflation.
The impact of inflation and unexpected costs on Graybar Electric retirees.
Strategies to reduce the burden of stealth expenses through proactive planning and saving.

Many Graybar Electric employees concentrate on budgeting and income management while making retirement plans. While this is crucial, planning for hidden or stealth costs—unexpected expenses that can occur and negatively impact finances—is often overlooked. Even with a well-thought-out budget, retirees may find themselves caught off guard by these expenses, leading to unnecessary stress.

Unexpected expenses are a significant factor in 43% of retirees feeling more financially worried than before retirement, according to a recent study by TheSeniorList.com. ¹ Many Graybar Electric retirees realize that they are unprepared for the hidden costs that emerge once they leave employment, despite saving substantial amounts for retirement. While $1.26 million is considered an ideal amount to retire comfortably, ² many Graybar Electric employees haven’t reached this target, making them vulnerable to unanticipated costs that could derail their financial plans.

“Graybar Electric retirees and pre-retirees recognize the imperative to plan for unforeseen financial events, but they often struggle to put aside sufficient funds to do so,” says Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement. The current high rate of inflation is making it more challenging for investments and savings to keep up with rising prices, exacerbating the issue. Notably, 20% of retirees and 35% of pre-retirees say they experienced a financial shock that caused them to lose more than 25% of their assets, according to the Retirement Risk Survey conducted by the Society of Actuaries (SOA) Research Institute. ³ This underscores the importance of addressing hidden expenses in retirement.

To help prevent financial strain, Graybar Electric retirees should prepare for and anticipate the five most common stealth expenses listed below.

Health Care Expenses

Graybar Electric retirees are often surprised by the full cost of health care, despite it being a known expense. Unexpected medical expenses, especially for serious or chronic conditions, can become a significant financial burden. 'Putting numbers around the potential cost of unexpected medical crisis is notoriously challenging, and even chronic health issues are hard to estimate, especially if they last longer than expected,' says Patrick Ray, a financial advisor at The Retirement Group, a division of Wealth Enhancement. The price of medical care might vary greatly. A hospital stay of two nights could cost about $20,000, but a longer stay or a serious illness could easily exceed $100,000. ⁴

Even for those with insurance, medical bills are a common source of hidden costs. Graybar Electric retirees may need to cover a significant portion of medical expenses due to escalating insurance premiums, co-pays, and deductibles. By confirming they have adequate insurance coverage, including supplemental insurance for unforeseen medical costs, retirees can manage these expenses more effectively. Home insurance can also provide additional financial support for unexpected costs, such as an injury on the property.

Taxes

Taxes do not disappear in retirement, despite what many retirees may assume. Many Graybar Electric retirees believe they won’t need to pay taxes once they stop working. However, this is rarely the case, especially for those with multiple income sources. 'Although many retirees no longer earn a salary, they still receive income from an array of sources, such as employer-sponsored plans, savings and investments, and Social Security,' says Kevin Won, a financial advisor with The Retirement Group.

Depending on its source, retirement income may be taxed differently. For example, distributions from retirement accounts like IRAs and 401ks are taxable, and Social Security benefits may be taxed if a retiree's income surpasses certain thresholds. Taxes on investment income can complicate retirement planning. Graybar Electric retirees can save on taxes by using strategic asset placement and planning.

Emergencies

Emergencies are an inevitable aspect of life, and their unpredictability makes them especially challenging to prepare for. These emergencies can include anything from car repairs and home maintenance to unanticipated legal or family medical expenses. Neva Bradley, a financial advisor at The Retirement Group, emphasizes the importance of putting money aside for these situations. On a fixed income, she explains, 'retirees who don't put funds aside for emergencies risk facing unexpected expenses that could reduce their monthly income, making it harder to cover necessary costs.'

Graybar Electric retirees can manage these unexpected costs by maintaining a separate emergency savings fund. It is important to set aside a percentage of funds specifically for emergencies, so retirees can cover expenses without having to dip into their primary retirement savings or return to work.

Family Emergencies

Financial emergencies involving family members can also be a significant hidden expense in retirement. Many retirees, including those at Graybar Electric, want to help their adult children or grandchildren during difficult times. Helping adult children in a crisis or contributing to grandchildren’s college tuition could cost up to $20,000 per year or more for tuition alone.

Major family events, such as the death of a spouse, can also create high expenses. For instance, typical funerals cost between $7,000 and $12,000, ⁵ and there may also be legal fees to settle the estate, which can range from $5,000 to $10,000 or more. ⁶ Financial advisor Kevin Won stresses the importance of planning for these expenses. “Retirees who want to help family members through tough times should think through how they plan to cover those costs,” he says.

Costs Associated with Inflation

Inflation is one of the most common and unpredictable expenses in retirement. Many Graybar Electric retirees aren’t prepared for their purchasing power to slowly decrease. Inflation can significantly erode the value of retirement funds, making it harder to maintain your desired lifestyle. 'Inflation isn't something you can control, but it is something you can plan for,' says Kevin Won. This begins by understanding how inflation could erode your purchasing power over time. For instance, investments of $50,000 annually today would notionally need to grow to $90,000 in 20 years to maintain the same purchasing power.

Inflation impacts every aspect of life, from housing and health care to food and transportation. Inflation and the cost of living were cited by 28% of retirees as the most unexpected aspect of their retirement planning, slightly surpassing the 27% who mentioned medical and health care costs, according to the SeniorList survey. Graybar Electric retirees living in older homes or regions susceptible to natural disasters may also face additional costs for repairs or insurance.

Three Strategies to Reduce Retirement Stealth Expenses

Fortunately, Graybar Electric retirees can take steps to prepare for and reduce the burden of these hidden costs.

Create a 'Stealth' Annual Budget

One practical approach is to create an annual budget specifically for stealth expenses. By planning in advance, Graybar Electric retirees can minimize the stress of dealing with unforeseen bills, which many mistakenly treat as emergencies. Neva Bradley advises, 'Budget for these expenses annually.' Regular retirement budgeting should include costs such as car updates or appliance replacements.

Delay Retirement

Delaying retirement by even a few months or years can help enhance a retiree's financial situation. Continuing to work allows retirees to save more, avoid early withdrawals from retirement accounts, and let investments grow. Neva Bradley recommends that Graybar Electric retirees 'push back retirement for as long as practical' to strengthen their financial position.

Put the Money Away Early

One of the most effective ways to prepare for unforeseen expenses is to start saving for retirement as early as possible. Paul Bergeron from The Retirement Group suggests using health savings accounts (HSAs) to save for future medical costs. 'Health care costs are on the rise and often exceed what retirees anticipate. An HSA can help,' he notes. Even without an HSA, Graybar Electric retirees should prioritize saving for medical expenses to cover co-pays, co-insurance, and uncovered health care costs that can quickly add up.

In Conclusion

Hidden costs, such as health care, taxes, emergencies, family-related expenses, and inflation, can significantly affect Graybar Electric retirees’ financial well-being. While these expenses are often unforeseen, retirees can take proactive steps to plan for them. By budgeting for unexpected costs annually, delaying retirement, and saving strategically, Graybar Electric retirees can alleviate the financial strain brought on by stealth expenses and craft a comfortable retirement.

The soaring expense of long-term care, often not fully covered by health insurance, is a major concern for retirees. Those who are currently 65 have almost a 70% chance of needing some type of long-term care services in the future. ⁷ Planning ahead for these costs, whether through insurance or savings, is crucial for safeguarding retirement income.

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Sources:

1. TheSeniorList. ' Surprise Retirement Costs: What Seniors Need to Know To Protect Their Savings ,' by Amie Clark. 8 Oct. 2024.

2. CNBC. ' The 'magic number' to retire comfortably fell to $1.26 million--but people are less confident they can reach it ,' by Jessica Dickler. 21 Apr. 2025.

3. Society of Actuaries. “ Retirement Risk Survey Finds Financial Shocks .” Society of Actuaries, 19 Dec. 2024.

4. International Citizens Insurance. ' How Must Does Healthcare Cost in the U.S.? ' 2025.

5. Trust & Will. ' Funeral Costs 101 .' 2025.

6. Trustate. ' Estate Expenses - Who Pays What? ' 2025.

7. Administration for Community Living. ' How Much Care Will You Need? ' 18 Feb. 2020.

Other Resources:

Kiplinger. “The Five Biggest Stealth Costs in Retirement.” Kiplinger, 26 May 2025.

What steps must an employee take to ensure they accurately calculate their pension benefits when planning for retirement under the Electricians Pension Plan, IBEW 995? Employees need to understand the various factors that contribute to benefit calculations, including years of service credits, age, and any early retirement reductions. Participants should also familiarize themselves with the formulas outlined in the plan regarding Normal Retirement and Early Retirement benefits.

Employees under the Electricians Pension Plan, IBEW 995 can ensure accurate pension calculations by reviewing the plan's formulas, which consider factors like service credits, age, and early retirement reductions. The plan provides specific calculation methods for Normal and Early Retirement pensions, so employees should refer to their accrued credits and apply the appropriate formula based on the years of service to get a precise benefit estimate(Electricians_Pension_Pl…).

How does the Electricians Pension Plan, IBEW 995, treat periods of active service compared to breaks in service when determining eligibility for pension benefits? Employees should be aware that their length of service is critical to establishing eligibility, and any periods identified as breaks in service may impact their pension status. Understanding the definition and implications of breaks in service can be vital for maximizing retirement benefits.

Service periods under the Electricians Pension Plan, IBEW 995 are critical for pension eligibility and accrual. Breaks in service, defined as periods where an employee is not credited with at least 250 hours in a plan year, can disrupt benefit accrual and participation. However, the plan provides grace periods for specific situations such as disability or maternity, preventing these gaps from affecting eligibility(Electricians_Pension_Pl…).

What are the implications of returning to work after starting to receive benefits under the Electricians Pension Plan, IBEW 995, and how can it affect ongoing pension payments? It's important for employees to recognize the conditions classified as "Disqualifying Employment" that can lead to suspending their pension benefits. Knowing how working while receiving benefits influences the plan can help retirees make informed decisions about their post-retirement employment.

Returning to work after starting to receive benefits under the Electricians Pension Plan, IBEW 995 can result in a suspension of benefits if the work qualifies as "Disqualifying Employment." Employees should check the plan’s definitions to see if their employment will affect their pension payments. Generally, working over 40 hours per month in covered employment or similar trades can trigger a suspension(Electricians_Pension_Pl…).

In what ways can an employee's spousal status influence the benefits they receive from the Electricians Pension Plan, IBEW 995? Employees need to understand how their marital status affects pension distributions, including survivor benefits and waivers. This knowledge is crucial for planning, as certain benefit structures depend significantly on whether the participant has a qualified spouse.

Spousal status significantly affects the distribution of benefits under the Electricians Pension Plan, IBEW 995. If an employee is married, the default pension option is the Joint and Survivor Annuity, which provides a continued payout to the spouse upon the participant’s death. The plan also outlines the necessary waivers and consents required for changing these benefits based on marital status(Electricians_Pension_Pl…).

How do changes in the Internal Revenue Service (IRS) regulations affect the contribution limits and benefit payouts related to the Electricians Pension Plan, IBEW 995? Employees should keep informed on the most current IRS guidelines, as they directly influence how benefits are calculated and dispersed. Awareness of IRS limits can prevent unexpected tax penalties and ensure compliance with pension law.

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What documentation is required for employees to maintain their eligibility for pension benefits under the Electricians Pension Plan, IBEW 995, especially after significant life events such as marriage, divorce, or disability? Employees must notify the plan office of life changes and provide necessary documentation. Understanding what these documents are and how they should be submitted is crucial for maintaining eligibility and accessing benefits.

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If a claim for benefits is denied, the Electricians Pension Plan, IBEW 995 provides an appeals process. Employees must file a written appeal within 60 days of receiving the denial notice. The appeal should include any relevant documentation, and employees should follow the timeline and procedures outlined in the plan to ensure proper consideration of their case(Electricians_Pension_Pl…).

How can employees determine if their employer is meeting its financial obligation to the Electricians Pension Plan, IBEW 995, particularly regarding contributions? Understanding the mechanisms for verifying employer contributions can help employees ensure that they are accruing the appropriate benefits. Employees should know whom to contact and what reports they can access to gather this information.

Employees concerned about their employer meeting its contribution obligations to the Electricians Pension Plan, IBEW 995 can contact the plan’s administrative office for verification. The plan allows participants to access contribution reports to confirm that employers are properly crediting their accounts(Electricians_Pension_Pl…).

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The Electricians Pension Plan, IBEW 995 offers various resources to help employees understand their retirement options. These include the plan’s summary description, workshops, and individual consultations with plan administrators. Employees should make use of these tools to gain a clear understanding of their pension and plan effectively(Electricians_Pension_Pl…).

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