Top 10 Biggest Retirement Mistakes to Avoid
While Retirement can be an exciting moment in one’s life, it can also turn out to be one of the feared milestones events, putting the person in the dilemma of “had I known.”
Many people who are of age do plan, save, and aspire that day when they will be freed from their occupational stress, and be at the liberty to pursue what interest them most.
However, once the time comes, the stories change from their expectation, as some mistakes turn into a sudden nightmare.
According to reports by Social Security Administration, 25% of those who age 65 years retirement age will reach age 90 with 10% making it more than 95 years. No one prays to die without enjoying his or her retirement; some common mistakes can make retirement a nightmare for some people.
For example, many people postpone retirement planning and when it suddenly happens, they are caught unaware for meeting the financial demands of the time considering their reduced income that quickly drains their savings and investment. When this happens, the whole situation robs them of both their Golden Year enjoyment and peace of mind.
In this article
There are some common retirement mistakes you must avoid as much as possible. Moving Feedback has put this post together to look at those common retirement mistakes to look out for in a view to prevent them from happening.
Finances have been linked to most retirement issues usually occur during retirement age. Before unexpected begins to happen, it is an excellent idea to know prior to the time and knowing that they can actually be prevented from happening. Below are some of the top retirement blunders you should avoid:
1. Failure to Plan for Retirement
If you fail to plan, you plan to fail, goes the say. According to Long Term Living Association’s post, over 64% of Americans don’t think of retirement planning. This tops our list of dangerous retirement mistakes made by people. While many people have no plan at all, some start planning too late after retirement.
Planning earlier prior to your retirement period not only give you and your household peace of mind but also position you financially. The truth is that lack of planning is a national disaster to your retirement life.
2. Early Retirement
Retiring too soon without taking action is one of the common mistakes made by some retirees. Some people are so anxious to leave their jobs; hence, they jump the gun and start eating up their retirement savings. Untimely retirement, either prior to your emotional or financial readiness can be disastrous.
If you know you are not ripe for retirement and you are still young, but your time is up in service, you can consider taking another job after your early retirement from the first job.
Retiring too soon and still have age to your side means you still have more years to spend, so you would need finances to enjoy that year ahead. The question is, can your saving take you through the time? So, before you pull the trigger, think twice.
3. Casting all of your Retirement Eggs into One Basket
Retirees are also fond of making the mistake of depending solely on their retirement pension. This has made them fail to invest during their service years.
When retirement pension delay within a period, it exposes them to unnecessary hardship, as there may be not enough finance to sustain them within the period. Involve multiple sources of income and investments with your pension to position you better throughout your retirement age.
4. Postponing Saving when you are Younger
Though you may be enjoying all your earnings now, postponing saving when you still have the strength to do so will tell later. Investing in something no matter how small from each paycheck will pay you later during your retirement time.
Many keep postponing saving when they are younger having the mind that age is still on their side can be dangerous. The way out is to contribute something to saving the purse to fall back on. This serves as another stream of income. It is never too earlier to start saving.
5. Not Prepared for Anticipated Medical Expenses
In your entire plan, put health first. Remember that health care covers about 80% of most expenses during retirement. You are making a big mistake if you are not preparing for anticipated medical bills such as hospital stays, surgery, or medications which may become substantial and eat deep into your retirement savings.
Don’t forget, at your old age, you may be limited to some kinds of foods and subjected to medications to support your organs due to old age. Will your savings or health insurance be enough to care of you? Prepare!
6. Having the though your Children will Take Care of you when you Age
Remember your kids have their own lives to live. Their families will first be on their minds before any other things. If peradventure they want to do so, time, resources, or temperament may not be there for them.
Don’t make the mistake that you are solely their liability, things may not go the way you think; hence, plan out your life in advance what you will do and where you will live if you are lucky to live longer after retirement.
7. Relocation Mistakes
Many may not think about this but the mistakes can be costly sometimes. Moving to a new location without prior vetting is another retirement blunder to avoid. Every retirement move aims to maximize the adventures of retirement; relocating to a place to achieve the goal is non-negotiable.
An endless golf and beach walk, as well as an endless slower lifestyle, can get you boring faster. Before you move to a location for retirement, ensure you rent before buying the property for relocation. You can read our post on “Top places to move to for retirement”.
8. Move too Far from Friends and Family
Retirement move has become one of the parts of retirement exercise. However, moving too far from friends and family is one of the common retirement mistakes. At this stage, you need friends and families around you to keep you happy; moving too far from them is not a good idea.
Your new location is expected to be accessible maybe for occasional or holiday visits. Size every option available to you to compensate for the distance move from your friends and family.
It may sometimes lead to the relocation of depression. Remember at that time you will need companionship and a kind of assistance. You can as well read our post on “How to Cope with Relocation Depression”.
9. Move to an Incompatible Suburb or Environment
Your environment plays a vital role in your general retirement location. Finding yourself in a community different from your passion may turn your move to regret.
Moving custom-based environment when you hate the rule, or moving to a suburb when you love activities, or relocating to a liberal community when you are conservative, is not a best-match at all. It is advisable to visit before rent or buy to avoid such an occurrence.
10. Taking out of your Retirement Savings during Service
Some people are in the habit of taking out of their retirement savings for some expenses with a view to settling some bills while they are still in service. Your retirement savings are meant for your after-service expenses and not for your kids’ college tuition fees.
Many financial experts advise that on no account should you tap into your home’s equity to settle some expense. Avoid these retirement mistakes as much as possible.
The following table displays the biggest retirement mistakes to avoid:
|No.||Biggest Retirement Mistakes to Avoid|
|1.||Failure to Plan for Retirement|
|3.||Casting all of your Retirement Eggs into One Basket|
|4.||Postponing Saving when you are Younger|
|5.||Not Prepared for Anticipated Medical Expenses|
|6.||Having the though your Children will Take Care of you when you Age|
|8.||Move too Far from Friends and Family|
|9.||Move to an Incompatible Suburb or Environment|
|10.||Taking out of your Retirement Savings during Service|
Mistakes are costly and regrettable, especially when it comes to retirement, it can be disastrous. While some mistakes can be corrected, some may not, as you have to suffer the consequences throughout the remaining part of your life. The retirement period is a time to relax and enjoy what you had labored for all through your active years; hence, making some blunders may cost you endless happiness and peace of mind. Is that what you hope for? No! Avoid the biggest retirement mistakes as contained in the post as much as possible. Stay tuned for more informative posts from this page!