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Top 3 Retirement Blunders to Avoid

November 6th, 2017 3:34 PM by Sharon Mason

Top 3 Retirement Blunders to Avoid

Did you know? The Social Security Administration reports that one quarter of those who are age sixty-five today will reach age ninety, and ten percent will make it past age ninety-five. So if you want to be financially set during those golden years, finance experts say you should avoid these top 3 retirement blunders.

1.) Draining your retirement accounts: Dipping into your retirement accounts early might seem essential at the time, but it can hurt you in the long run. While loans can be taken from 401(k) accounts and IRA money can be withdrawn early for certain needs financial advisors suggest keeping your hands off that money so that it can accumulate compound interest. That interest can add thousands more to your account balance at a time when you’ll truly benefit from it.

2.) Not budgeting for health care: Medical expenses can be a major cost in retirement and one that is often neglected. It’s easy to underestimate health care costs and find yourself in the red financially. The best plan of action is to carefully review your Medicare options with a professional to pick the best plan for you and budget accordingly.

3.) Taking Social Security benefits too early: Retirees can begin benefits as early as age sixty-two. However their monthly balance will be lower than what they could receive if they wait until the full retirement age of sixty-six. In fact, delaying taking social security benefits could give retirees an extra eight percent for every year they wait to claim benefits, says T. Michelle Jones, a certified financial planner and vice president at Bryn Mawr Trust.

When it comes to developing a retirement plan, it pays to avoid these top 3 retirement blunders and maximize your savings. For more tips on retirement or if you’re looking for an Arizona retirement community please contact Sharon Mason today.

Your retirement expert,
Sharon Mason
RE/MAX Professionals
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