“Are You Making These 14 Costly Mistakes That Could Drain Your Retirement Savings?”
Plenty of warning signs can tell you if your retirement fund might fall short. Some are obvious, like overspending, while others, such as not accounting for inflation or healthcare costs, can sneak up on you. Recognizing these red flags early is critical to making adjustments and safeguarding your financial future.
This list breaks down 14 clear indicators that your retirement plan might not be as foolproof as you hoped. The good news is spotting these issues now gives you time to fix them, ensuring your golden years stay stress-free and enjoyable.
1. You Haven’t Calculated How Much You’ll Need
If you don’t have a clear estimate of your retirement expenses, you’re setting yourself up for trouble. A common rule of thumb is that retirees need about 70–80% of their pre-retirement income to maintain their lifestyle, but this can vary widely based on personal goals and circumstances.
Without a detailed plan, you might overlook big-ticket items like housing, medical expenses, or inflation. Budgeting and working with a financial planner can give you a realistic snapshot of your future needs.
2. You’re Retiring with Outstanding Debt
Carrying debt into retirement is like dragging an anchor into what should be smooth sailing. Mortgages, credit cards, or personal loans can quickly drain your fixed income, leaving little room for other essentials.
Prioritizing debt repayment before you retire is one of the smartest financial moves you can make. The less you owe, the more breathing room you’ll have to enjoy during retirement.
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