It’s never too late to save for retirement, but some mistakes can keep you from the quality of life you want in your golden years. In fact, a few of these mistakes can prevent you from retiring altogether.
You deserve a secure and comfortable future, and that begins with proper retirement planning. Make sure your retirement stays on track by avoiding these top seven mistakes.
5 Biggest Retirement Mistakes to Avoid
What you do today has a massive impact on your retirement years. Don’t let the following errors get in the way of your dream retirement.
1. You’re not saving enough money
You may think that you already have enough savings for your retirement. Unfortunately, statistics say that most people have fewer savings than they think they do, and may not even last a decade after retiring.
Don’t risk outliving your money. Improve your retirement strategy with the help of an expert financial planner. They will help you determine your retirement goals, and how much you need to save today to achieve them. They can also help you boost your savings by teaching how to maximize your investments and streamline your budget. (See Related: Practical Money-Saving Tips)
2. You’re not planning for long-term care
Most seniors will eventually need long-term care for daily living tasks. Without a plan, you may not have enough funds for this need. Consider investing in long-term care insurance, or earmarking your home equity and certain investments for this purpose.
3. You mismanage your debt
Carrying debt into retirement is a surefire way to struggle in your later years. Not only will it eat away at your nest egg, but the older you get, the fewer opportunities you have to make money. Withdrawing significant amounts from your retirement fund can also force you into a higher tax bracket and more significant Medicare premiums. Consult a financial planner as early as you can to find ways to pay off your debt faster before your retirement years arrive. (See Related: Debt Reduction: The Absolute Best Ways to Get Out of Debt Forever)
4. You quit your job too early
Some people get too excited about retiring and leave the workforce without a realistic grasp of their financial situation. Keep in mind that regular jobs offer many benefits, such as profit-sharing, employer contributions to your 401(k) plan, and stock options. Evaluate how to get the most of these employment-related benefits before starting to plan your exit strategy.
5. You’re paying for services you don’t need
That insurance policy you bought when you were younger may not make sense in the years close to your retirement. Review everything from your insurance policies to your investments and annuities. Cancel everything that doesn’t fit into your retirement plans. It pays to have a financial advisor on your side to help you analyze your retirement needs. Be wary of products such as annuities. Many of these are designed to lock up your funds and penalize you heavily for withdrawal.
If done right, your retirement can be the best years of your life. That’s only possible with careful and deliberate preparation. Avoid these five biggest mistakes, seek help from a reliable financial advisor, and prioritize your retirement planning as soon as you can.
Tycoono, LLC and its affiliates do not provide financial, tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, financial, tax, legal or accounting advice. You should consult your own financial, tax, legal and accounting advisors before engaging in any transaction. Please refer to our disclaimer for more information.