Retirement is the time when you can finally reap all of the benefits you’ve been working so hard to earn during your career.
But for some people, retirement isn’t as easy to navigate as they might think. There are many do’s and don’ts to consider, like deciding how much money you should be saving or what type of retirement account you should invest in. Here are some tips that will help make sure your last phase of life is as easy-going as possible.
DON’T Retire Too Early
One of the most common mistakes retirees make is they retire too early. If you were wondering at what age can you retire, the short answer is: It depends. There isn’t a certain age you have to retire by. What counts as too early is different for everyone and retirement comes with its own set of challenges depending on your profession and various other factors. Some people might not really feel like they’re too old for the job market until the age of 70, but other people may start feeling uncomfortable in their line of work around 60. The bottom line is: don’t retire too early. Around 75% of retirees wish they hadn’t retired as early because that money could have been used for other things like travel or family members.
DO Consult A Financial Professional
Many people think they can handle their finances on their own. You might have a pretty good idea of how much money you want to save for retirement, but there are so many different variables involved in planning your finance that it’s best to leave things up to professionals. Working with a financial advisor is also a great opportunity to discuss all the different options you have for saving your money. They will be able to tell you what sort of retirement account would be best for the amount of money you’re investing and the length of time you want to invest it. You should always plan to consult a financial professional before you make any major decisions about your retirement.
DON’T Take Social Security Too Early
Another common mistake retirees make is they start taking their Social Security too early. Social Security monies aren’t meant to be your main source of income when you’re retired. While you might feel tempted to start cashing in on that money as soon as possible, keep in mind that there’s a minimum number of years you have to wait before starting to collect that money. Once you start living off of the Social Security check, you’ll have to stick to a strict budget and will have a limited amount of spending money each month. So while it may be tempting to take your Social Security as early as possible, try not to do it until you absolutely need to because there are plenty of other ways to save your money.
DO Prepare For Unexpected
One of the most underrated aspects of retirement is not preparing for expenses you might encounter later on in life. Many people don’t realize that if your spouse dies, you’ll receive fewer Social Security benefits. You will also be responsible for paying more money out of pocket to stay in their assisted living facility or nursing home because it’s now billed as a “single resident” instead of a “couple.” There are plenty of other things you should be prepared for, like unexpected medical bills. It’s important to take all sorts of scenarios into consideration and not just assume your savings will last until the end.
DON’T Buy Pricey Stuff
Buying assets that quickly depreciate in value is a big mistake that many retirees make. Even if you have an extra couple of thousand dollars, it’s never a good idea to spend it on something like a new car or electronics. This is because you’re going to be stuck with a depreciating asset that’s only going to lose value over time and you’ll regret the decision even more if you plan on living off of your savings.
DO Set Goals
Setting goals is one of the best ways to make sure your retirement is as easy and convenient as possible. For instance, if you’re currently living in a big house that has plenty of space for all of your kids and grandkids but feels like moving into a smaller place when you retire would be more convenient, now’s the time to start planning for it. Also, think about other goals you might have in retirement. You might want to plan a trip around the world or move somewhere you’ve always wanted to live. Having goals can keep you motivated and excited about retirement, so start setting them now!
DO Start Saving And Investing NOW
The last tip is to start investing as soon as possible. You don’t want to wait too long, because there are some important factors that could impact how much money you have when you retire. For instance, if you don’t invest enough money early on, your savings won’t go very far later in life. But the good news is you still have time to start investing and let it grow over the years. That’s why you should never put off saving and investing until later because it could put your retirement at risk! Consult with your financial planner today to help you get started planning for your retirement.
Today’s retirees are faced with unique challenges that their parents and grandparents never had to deal with when they were in the same position. For instance, many people assume that retirement will be a lot easier because they won’t have as many bills to worry about anymore since their kids are no longer living under their roof. Although this may be true, you could be surprised to find out how much money you have to invest just to enjoy a comfortable retirement. This article gave you some of the most important do’s and don’ts to follow when it comes to retirement planning. Use this information to help you navigate your retirement more smoothly so you can enjoy spending time with your family without worrying about money getting in the way!