You may spend decades planning for your retirement, but it is still possible to make mistakes that you end up regretting. Sometimes the best way to make plans is to ask others, who are already retired, what they would have done differently. The following three retirement mistakes commonly top retirees’ lists of regrets:
Relying on a pension. Many retirees have made the mistake of relying upon a pension they were promised, but their former employer discontinues the pension or cashes them out. It’s always best to create your own retirement savings, independent of pensions and Social Security.
Withdrawing from retirement accounts. It’s a common mistake to cash in a retirement account to pay for a child’s college education or some other large expense. Then you incur all sorts of taxes and penalties for which you were not prepared, and these cost you a significant chunk of your retirement savings. Then, you’re years behind in preparing for retirement, and end up having to work much longer while your friends and co-workers are retiring. Find other ways to fund those big purchases instead.
Failing to revise financial plans. As we age, we face many different financial decisions, and therefore many opportunities to make mistakes. Planning for retirement and living on a fixed income requires financial planning, complicated tax decisions, and making choices about life insurance. Then, of course, we must make legal decisions such as estate planning and designating beneficiaries. Many retirees work with separately individual professionals in each of these areas, such as a lawyer, an accountant, an insurance agent, and a financial advisor. A better plan is to invite each of these professionals to join the bigger conversation, and work together to revise your financial plan so that it best benefits you and your heirs.
This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.