By : Rachelle Wilber
According to the Pew Research Center, 10,000 people reach retirement age each day in the United States. Whether your retirement is going to mean drinks on the beach, launching the small business you always dreamed of or traveling the world, there are certain mistakes you will want to avoid. A misstep with your finances, lifestyle or health planning can be disastrous and rob you of the retirement you may have been planning for decades.
Believing you can work forever.
According to a study conducted by AARP, 79% of baby boomers polled stated they wanted to work in some capacity after retirement. However, according to the US Census Bureau, only 12 percent of the population aged 65 is over are working. Reasons for this range from health issues to age discrimination. Don’t count on being able to work for your entire life.
Moving to another state for low taxes, a lower cost of living or other financial reasons.
If you’re tired of your fast-paced NYC lifestyle and can’t wait to join all your family and friends in rural North Carolina, moving makes perfect sense. However, leaving behind all of your loved ones to retire elsewhere for financial reasons often leads to high travel costs and regret.
Failing to plan for health setbacks and care.
Transportation, housekeeping, companionship and personal care assistance can be costly and may be required on either a short-term or long-term basis depending on your needs. Plan for things like home care through places like Queen City Home Care when you aren’t able to take care of yourself anymore. These are all factors that will eventuality come around when considering retirement, as it is often overlooked.
Relying solely on Medicare for health insurance.
While much of the cost of health care and medications may be covered, you want to ensure your supplemental insurance is squared away before retiring. Research the options available to protect your nest egg should you suffer a health crisis.
Investing heavily in company stock.
Some companies love to hand out stock to employees, but allowing it to comprise too large a portion of your retirement plan is a disaster waiting to happen. Should the company fail, your future could be wiped out overnight. Make sure your money is well diversified and placed in a wide variety of investments to ensure your financial health.
Failing to downsize.
One of the easiest ways to stretch your nest egg is to place smaller demands upon it. If all of your children are grown, there’s likely little reason to keep your sprawling, four-bedroom home. If both you and your spouse are retired, there may be no reason to maintain two vehicles. Pare down your lifestyle to stretch your funds.
Retirement can be an exciting change in your life, but you need to be cautious. Careful planning for your health, finances and lifestyle is imperative. By utilizing these tips, you will protect your assets and make sound decisions about your future.