5 Retirement Mistakes to Avoid

Planning for retirement is an ongoing process. No matter how much you have saved or where you are in your journey, it’s a good idea to regularly check in with your plan and stay informed.

And even if you feel confident about your current strategy, it can help to review these common saving and spending mistakes.

Take a look, and feel free to help a younger friend or family member by sharing this with them:

Starting Too Late

While your earning potential tends to increase with age, planning to save later in your career can deprive you of early earnings. Starting as soon as you can may put you in a position to reach your goals a little more easily.

Underestimating Health Care Costs

Though you can start receiving Medicare benefits at age 65, it’s likely you’ll still have to pay your deductibles; additionally, Medicare usually doesn’t cover dental and vision costs. Make sure you include some wiggle room for these expenses in your budget. 

Delaying Your Estate Planning

The legal fees associated with creating your will or trust can be significant, so consider these costs when planning for retirement and think about tackling them sooner rather than later.

Borrowing From Your Account

Taking funds from your employer-sponsored 401(k) can be tempting, but is it the right move? If you do think about borrowing, do so carefully (and with guidance) to make sure you don’t incur any costly penalties.

Spending Too Much at Once

While you may be inclined to spend freely during early retirement, remember that your funds need to last longer than you might think. Maintain your financial freedom by keeping track of your spending and budgeting for whatever the future may hold.

Have questions on how to best manage your retirement? Reach out today.