“Are You Making These 14 Costly Mistakes That Could Drain Your Retirement Savings?”
3. You’re Banking on Social Security Alone
While Social Security provides a valuable safety net, it’s rarely enough to cover all your expenses. The average monthly benefit is about $1,800, which is far from sufficient for most retirees.
Relying solely on Social Security can lead to a bare-bones lifestyle or worse. Building additional income streams through savings, pensions, or investments is essential for financial stability.
4. Your Healthcare Costs Aren’t Accounted For
Healthcare costs catch some retirees off guard, especially since Medicare doesn’t cover everything. Dental, vision, hearing aids, and long-term care are just a few of the out-of-pocket expenses that can pile up.
Planning for these costs by setting aside a portion of your savings or purchasing supplemental insurance can help. Skipping this step could leave you financially vulnerable.
5. You’re Spending Too Much Too Soon
Retirement often starts with a burst of excitement in the form of travel, new hobbies, or home renovations. But overspending in the first few years can wreak havoc on your long-term financial health.
Financial experts recommend following the 4% withdrawal rule to avoid depleting your savings too quickly. Pacing your spending ensures you’ll have enough to last throughout your retirement.
6. You Lack an Emergency Fund
Emergencies don’t stop when you retire. Unexpected medical bills, car repairs, or family needs can strain your savings if you don’t have a dedicated fund.
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