With retirement readiness at an all-time low, very few adults are confident that they will be able to live comfortably after retirement.
With very little savings, and rising healthcare costs, it has become evident that few seniors have actually prepared for their later days.
The biggest mistake people make is not saving enough. Today, it has become even more important to ensure financial security or a comfortable retirement. But that’s not all!
Here are several other common retirement planning mistakes:
1. Retiring Too Early!
The tough truth is that earlier retirement leads to fewer savings. So before you decide to retire, make sure that you have enough funds to last you through the golden years.
Another problem with retiring too soon is that your government payouts can suffer. Remember, your age doesn’t have anything to do with the size of your retirement payout. However, retire too early, and you might have to live with receiving less in benefits each year.
2. Giving Up Hope!
They say ‘better late than never’. And the saying holds true for retirement planning as well. If you are well in your 40s and haven’t saved a penny, start now.
Catch up on your retirement savings and use the power of compound interests to create a comfortable nest egg. There are plenty of unconventional ways of for e.g. downsize your home, work part-time for extra cash and get the best of a catch-up contribution policy and you can still make it. Don’t give up!
3. Assuming You Have Control Over Everything!
Most people have it all figured out—until life brings about an unconventional event. Job loss, illness, accidents and other emergencies can strike at any time, and more so at later age.
When planning for your retirement, make sure you have enough saved early enough to let you retire safely.
4. Not Creating/Updating Your Retirement Plan
As you get to the retirement age, you will experience different life events and stages in life. And all of these events will change your outlook on life and retirement needs.
Create a retirement plan that reflects your lifestyle needs, and revisit it every three to five years to make adjustments, as necessary.
5. Relying On Others For Retirement Planning
Many of us are living under the illusion that our retirement is already planned for by somebody else, such as their employers.
The company pension plan isn’t enough. You will need to work on a personal retirement plan to ensure comfortable nest egg when you need it most. Take your retirement plan into your own hands, if you don’t want an ugly surprise at a later age.
The Last Word: Get Professional Help!
There is no doubt that many people don’t take retirement planning too seriously and suffer the consequences when it’s too late.
Transition Planning UK offers comprehensive retirement planning solutions, helping their clientele make responsible decisions regarding work and savings at a later age. Visit their website here to learn more about these services!