“Are You Making These 14 Costly Mistakes That Could Drain Your Retirement Savings?”

"Are You Making These 14 Costly Mistakes That Could Drain Your Retirement Savings?"

10. You’re Financially Supporting Adult Children

Grandmother giving her son a moneyGrandmother giving her son a money
Photo Credit: Depositphotos.com.

Helping your kids with rent, tuition, or loans might feel like the right thing to do, but it can jeopardize your retirement savings. Parents often sacrifice their own financial security to support their children.

Setting boundaries and prioritizing your savings is critical. Remember, your kids have more time to build wealth while your earning years are behind you.

11. You Don’t Have a Tax Plan for Retirement

Senior woman freelancer using laptop at kitchenSenior woman freelancer using laptop at kitchen
Photo Credit: Depositphotos.com.

Many retirees forget that their withdrawals from traditional IRAs, 401(k)s, and pensions are taxable. Even Social Security benefits can be taxed if your income exceeds a certain threshold.

Without a tax strategy, you could end up paying more than necessary, reducing your spending power. Working with a financial advisor to create a tax-efficient withdrawal plan can save you thousands over the course of your retirement.

12. You’re Relying on Market Performance Alone

two old people retired couple looking at bills and laptoptwo old people retired couple looking at bills and laptop
Photo Credit: Depositphotos.com.

If your retirement plan depends entirely on strong market performance, you’re gambling with your future. A market downturn, especially early in retirement, can significantly shrink your savings.

diversified portfolio and a cash reserve can shield you from having to sell investments during a market slump. Planning for market variability ensures your retirement doesn’t hinge on luck.

13. You’re Underestimating Housing Costs

High angle view of upset senior couple embracing and holding hands during house relocationHigh angle view of upset senior couple embracing and holding hands during house relocation
Photo Credit: Depositphotos.com.

Many retirees think their housing expenses will drop once they pay off their mortgage, but that’s often not the case. Rising property taxes, maintenance costs, or the need to downsize can lead to unexpected expenses.

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