5 Biggest Retirement Mistakes You Can Avoid
Retirement is just around the corner, and you can’t wait. Imagine, no more long commute. It’s the end of useless meetings. Just lots of time to do what you like, spending each day with people you choose to be with. Sounds pretty great, doesn’t it?
It can be. The question is, how much planning have you put into things from here?
‘Planning’ is one of those words which can strike fear into the heart of just about anyone. It seems tedious to work our budgets and schedules and timelines, especially when you’ve already spent most of your life doing just that. On the other hand, if you don’t spend time planning, you might just make these mistakes:
Not Thinking Far Enough Out
If you think you’re not going to live more than a few years anyway, you might be wrong. It used to be the national average put life expectancy in the low 70s. Now, it’s entirely reasonable to live into your 90s. Do you have enough set aside to cover for 20 years instead of 10?
What About Your Spouse?
You might be planning for a social security income from two people. But what if one dies? Now you’re left with only part of an income. Can you still manage if you’re alone?
Consider Your Debt
Sure, you owe the balance of your debt, but have you figured for the interest on the loans as well? This could very quickly drain more money from you than you initially plan for.
What if You Can’t Work?
You might have been planning for part-time work after retirement, or to retire at a later age. Health doesn’t always cooperate with these plans. If you’re forced to retire fully, or earlier than expected, are you still covered?
What About Care?
Lastly, there are other factors to consider regarding your health. You might not always be able to take care of yourself. Have you laid aside funds to cover for a caregiver, or to move into some kind of assisted care when the time comes? This is definitely something you want to plan for now, as insurance doesn’t always cover the full amount, depending on your policy.
The good news is, any of these mistakes are entirely avoidable. It’s all a matter of thinking these various items through in advance. Preparation and planning go a long way toward giving you peace of mind…and the time to enjoy all those lovely years ahead.