Ten Retirement Mistakes People Should Avoid
As the United States population average life expectancy continues to rise more people will need to plan ahead for retirement. Here are ten retirement mistakes that people should avoid making:
- Not planning ahead. Failing to have a retirement plan in place is a common mistake people often make.
- Discounting inflation. When putting together a financial plan for retirement it is important to factor in inflation.
- Not having enough saved up. Make sure you have enough money saved up to last for a long time.
- Dipping into retirement accounts too early. People should avoid raiding their retirement early, keep the money in the accounts so that it can accumulate.
- Making rash investment decisions. It is important to be cautious and not overly emotional when making investment decisions.
- Being too cautious with investments. Although it is true that people should not be overly rash when making investment decisions. It is still a good idea to take some reasonable risks with investments.
- Forgetting about employer 401(k) match. Avoid making the mistake of missing out on employer matching funds.
- Allowing all retirement income to be taxable. People should consider putting money into a Roth IRA to receive tax benefits.
- Not preparing for health care expenses. Plan ahead for the unexpected expenses of long term health care.
- Filing for Social Security early. While people can start getting benefits at the age of 62, it is a good idea to wait for the full retirement age to file for social security benefits.
See Maryalene LaPonsie, 10 Big Retirement Blunders, U.S. News, July 23, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.