“Unlocking the Secrets: What Experts Don’t Want You to Know About This Game-Changing Breakthrough!”
In your 50s, avoiding common retirement blunders is vital for setting yourself up for success. Here are 14 mistakes you’ll want to steer clear of as you prepare for this exciting, yet challenging, phase of life.
1. Not Saving Enough for Healthcare
Healthcare is one of the biggest expenses retirees face, and many underestimate just how much they’ll need. Sure, Medicare kicks in at 65, but it doesn’t cover everything. In fact, most people will still need to pay out-of-pocket for things like dental care, hearing aids, and long-term care.
Take the time to research how much you might need to cover medical expenses. According to Fidelity, the average couple retiring at 65 will need around $300,000 for healthcare throughout retirement. If you’re not prepared for that, you could end up draining your savings faster than expected.
2. Dipping into Retirement Savings Too Early
It’s tempting to tap into your retirement accounts when you see a large balance sitting there. But if you withdraw funds before age 59½, you’ll not only face penalties, but you’ll also lose out on compound interest. Every dollar you take out early is a dollar that won’t be working for you later.
If possible, leave those retirement accounts alone until you reach the right age. This will ensure your savings can grow uninterrupted. The more time your money has to accumulate interest, the more secure you’ll be down the line.
3. Ignoring Inflation
When you’re planning for retirement, it’s easy to forget that inflation can significantly erode the value of your savings. What might seem like a comfortable nest egg today could be worth far less 20 years from now if you don’t account for rising costs.
