4 Common Mistakes That Retirees Often Make
One of the most important issues for those nearing or entering retirement is whether they will outlive their savings and retirement funds. Despite this concern, though, there are several mistakes that many retirees will make, despite the advice of their trusted advisor.
Today we will cover 4 mistakes than many retirees make as they move from their working years into their golden years.
- Not Setting a Realistic Budget For Retirement – Not having a fully worked-out budget, including the exact monthly spending (groceries, household bills, etc.) and quarterly or annual bills (such as taxes or mortgage payments) is a mistake nearly every retiree makes, and something easily remedied by discussing and dissecting each bill, and planning ahead for the payments.
- Taking Pensions or Social Security Too Early – Diving too early into funds that are put aside specifically for retirement can cause a huge loss once you’ve stopped working, and money is no longer coming in regularly. If you plan to outlive your retirement funds, holding onto all pensions and Social Security will mean a more comfortable life once you really need it.
- Not Planning For The Inevitable – As we grow older, our health often fails and eventually, our time runs out. One of the biggest mistakes anyone can make is not to plan for illness, incapacity, or death. Having all your affairs in order, including a will, healthcare proxy, power of attorney, and speaking to your family about your final wishes, will make things much easier when you are no longer able to help yourself.
- Failing To Mentally and Emotionally Prepare for Retirement – People work hard their entire lives to scrimp, save, and create a financial plan for their future, but forget to prepare themselves mentally for a massive life change once their working years have ended. Retirees may often feel aimless and unappreciated, and as such, they are more apt to deviate from their plans and act irrationally, which can often include frivolous and unplanned spending.
Because we all hope to retire someday, and have our money work for us as long and hard as possible, working with a trusted advisor and having all your affairs in order can be a big relief and a major accomplishment.