Three BIG Retirement Dangers to Avoid NOW

Retirement planning is a tricky process, one that requires careful planning and patience. But even if you have a retirement plan with a clear set of financial and lifestyle goals, it’s important to be aware of several common missteps that many fall victim to. 

Here are a few common dangers to avoid. 

  • Underestimating the costs of health care

As health care costs continue to rise dramatically, employers are shifting more weight of the costs onto their employees. More companies are beginning to drop retired workers from their health plans, and millions of Americans have no form of coverage at all. Consequently, a common mistake made in retirement is a lack of preparation for the financial impact of health expenditures. 

 

  • Misjudging how long you or your spouse will live

Many underestimate the amount of assets that could be needed to last throughout their lifetimes. As medical technology improves and life expectancy increases, the odds are good that you or your spouse will live past age 90. So, it’s vital that you are prepared to live longer. 

 

  • Presuming you’ll work a long time

The baby boomer generation is famous for working long, hard hours to get ahead, and most believe that they’ll be working long into retirement. But that assumption can be one of the biggest retirement mistakes you make. 

Census Bureau statistics indicate the average age of retirement in America is now 63.

According to the 2019 Retirement Confidence Survey by Greenwald & Associates and the Employee Benefit Research Institute, just 13 percent of workers expect to retire before age 60, but 38 percent of retirees report retiring that early. Nineteen percent of workers plan to retire between 60 and 64; 33 percent of retirees retired in that age range.  Even if you want to work as long as you can, it may not always be possible because of circumstances such as poor health or disability, so it’s vital that you plan and save for such a scenario. 

Working with a financial professional and having the proper planning in place are essential keys to a successful retirement. It’s also important to keep an eye on health care costs and stay informed on issues that will affect your retirement. By focusing on the long term and being aware of common pitfalls, you can be prepared to make your retirement the best years of your life.

https://smartasset.com/retirement/average-retirement-age-in-every-state

https://www.ebri.org/docs/default-source/rcs/2019-rcs/rcs_19-fs-2_expect.pdf?sfvrsn=2a553f2f_4

Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Hunt Country Wealth Management and Securities America are separate entities. 

Securities America and its representatives do not provide tax or legal advice; therefore it is important to coordinate with your tax or legal advisor regarding your specific situation.

Written by Securities America for distribution by Hunt Country Wealth Management. 

Have questions about retirement, investing, or financial planning?

 

Hunt Country Wealth Management can help.
Click below to explore our services, or schedule a 15-Minute Discovery Call™ to talk with an advisor.

Gold Hunt Country Wealth Management Logo
Our mission is to prepare modern retirees nationwide for their journey into retirement and equip them with a plan to help them navigate the road ahead.

We believe retirement should free you — and it all starts with a plan.

Have Questions or Ready to Get Started? Schedule a 15-Minute Discovery Call™

Related Posts

Budgeting for Your Retirement

Budgeting for Your Retirement

Retirement planning requires determining your retirement expenses, and that starts well before you retire. Start your budget planning process at least five years before you plan to retire to help you determine whether you’ll have enough accumulated to actually afford...

read more
Basics of Required Minimum Distributions

Basics of Required Minimum Distributions

The IRS lets investors hold off taxes on certain retirement accounts – but not forever. Congress encourages Americans to save for retirement by investing in tax-deferred accounts where the earnings and certain contributions can grow free from the dilution of taxes....

read more
We believe retirement should free you. It all starts with a plan.

Have Questions? Schedule 15-Minute Discovery Call™