We know all too well how important it is to plan for retirement, and there are so many mistakes one can make when retirement planning is involved. Here are but a few mistakes that one can avoid.
First of all, not saving enough. A good number of us have estimated the age to which we will get to leave, the majority placing the number between 75 and 85. However, we might end up living longer than expected to, let’s say, 95 or even 105. That said, having enough put away is essential so as to ensure the golden years are enjoyed, no matter how long one ends up living.
Assuming good health through retirement years. You might have always eaten right and never missed a day of work, but mother nature has a way of catching up. A significant dent could be put on your retirement savings by your health, taking a bad turn. It is, therefore, better to overestimate your retirement needs rather than underestimating.
Procrastinating on starting a retirement account until later in your working years. This procrastination only makes it way harder to meet the goal you’ve set. It is best to start early and set aside as much as you can now.
As much as social security is a nice benefit, relying solely on it can generally prove to be insufficient.it is advisable that this benefit is used as an added benefit.
Using retirement funds to loan funds. We are all hit by hard times, and at times it may be tempting to scoop some of the funds in your retirement account to weather the cloudy days. This is a problem because once those funds exit your account, they are no longer earning interest, thereby sacrificing the potential your money has of growing. You can borrow from your retirement account only when you are entirely out of options, and that is your only saving grace