“Are You Making These 14 Costly Mistakes That Could Drain Your Retirement Savings?”
Setting aside 3–6 months’ worth of expenses in a liquid account gives you a buffer. It’s a small step that can make a big difference when life throws you a curveball.
7. You’re Ignoring the Impact of Inflation
Inflation can silently erode your purchasing power, making your savings worth less over time. What costs $50,000 today might require $70,000 in 20 years.
Investing in assets that grow with inflation, such as stocks or real estate, helps protect your retirement fund. Ignoring inflation is a mistake that could leave you struggling to make ends meet later in life.
8. You’re Underestimating How Long You’ll Live
Many people fail to plan for the possibility of living into their 90s or beyond. With advancements in healthcare, lifespans are increasing, and underestimating your longevity could mean outliving your savings.
Planning for a longer retirement is better than running out of money. Overestimating your lifespan ensures financial peace of mind in your later years.
9. Your Investments Are Too Cautious
While minimizing risk is important, being overly conservative with your investments can backfire. Low-risk assets like bonds often don’t generate enough growth to outpace inflation or sustain long-term expenses.
A balanced portfolio with some exposure to stocks can help your money grow. Being too cautious might protect your savings in the short term but leave you underfunded in the long run.
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