5 Budget Mistakes to Avoid for Retirement Planning
Whether you hope to retire early, on time or as late as you can, it’s important to consider your future budget.
You’ve worked and saved for years toward financial independence. Here are some common planning mistakes that can ruin retirement.
Miscalculating Retirement Expenses
Without work, you might find yourself spending more on travel, dining out, hobbies or home improvement during retirement. Less often, people overestimate their needs and work longer or sacrifice more than needed. A retirement financial planner can help you with the math.
Carrying High-Interest Debt into Retirement
Paying off debt can free up funds to save for retirement. Why pay interest when you could be earning money on investments? Create a plan to avoid incurring more debt with an emergency fund.
Ignoring Inflation
Prices increase steadily over time—and sometimes, they jump up. Look into high-yield savings or money market accounts and other investments that can help you keep your purchasing power during your retirement years.
Underestimating Health Care Costs
Even with the best diet and exercise habits, illness and injuries are part of life. Learn about Medicare costs and coverage, and if you want to retire before 65, get familiar with private health insurance options. It’s hard to save too much for medical expenses.
Ignoring Long-Term Care Risks
Assisted living and home care cost thousands of dollars a month. Health insurance rarely covers these costs. Consider long-term care insurance, Medicaid planning or other strategies to prepare, especially if chronic illness or dementia runs in your family.
Quality Choice Insurance Agents Can Help you Navigate Retirement Planning!
Contact us today to discuss your current retirement financial planning and see if we can help you maximize it for the future, no matter what your age.
