Retirement can usher in a new purpose in your life with the freedom to pursue new hobbies, travel, and other fulfilling life goals. However, it can also create financial havoc if you’re not careful. Don’t make the same mistakes that can ruin your financial future in retirement. Here are 5 common financial mistakes that people make in retirement—and how to avoid them.
- Coasting along with the same portfolio. As you get closer to retirement, you’ll want to make sure your retirement savings focus on more conservative investments. If you work with a knowledgeable financial advisor, he or she should help you make this shift at the appropriate time.
- Not cutting back your spending. Although retirement is an excellent time to enjoy life, most people have to become more prudent in how they are spending money. However, reality doesn’t always match that advice. An article from Motley Fool reports that 46% of households spend more in the first two years of retirement than they do at the very end of their working years. If you have limited retirement funds, cut back on the amount of money you are spending so it will last appropriately.
- Not paying attention to health issues. The more you can keep up with regular health checkups, the more you can prevent costly and serious health problems down the road. Keep up with those dentist, primary care doctor, dermatologist, and eye care checkups. And, as you plan financially, build in extra funding for health problems that could arise in the future.
- Thinking you’re scam-proof. Even the most sophisticated retiree can become a victim to one of the many financial scams plaguing seniors nowadays. “These scammers are constantly coming up with new ways to cheat the people they feel are the most vulnerable,” according to an article from AgingCare.com. “The elderly always top the list of a swindler’s potential victims.” Read the news to stay aware of the latest money and technology-based scams, so you won’t become a victim.
- Applying for Social Security too early. Although age 62 is the earliest age possible to get Social Security benefits, that doesn’t mean you should apply then. You’ll get more of a boost in your benefits if you wait longer. “If you’re still working part-time in retirement, or have enough income from savings to pay your living expenses, it pays to hold off on Social Security until 70,” according to The Motley Fool.
Call Secure Aging to Find Out How We Can Help Seniors With Financial Management
At Secure Aging in Bradenton, we transform the weight of the world into a sigh of relief for our senior clients and their concerned family members. The mission of Secure Aging is to protect and preserve our client’s independence and dignity through careful and thoughtful financial and care management. As our clients age, it is their desire to remain independent and age with dignity. Our services protect our clients from talented con artists looking to exploit and deplete the financial resources of our vulnerable seniors. Secure Aging helps families in Manatee County and Sarasota County and in and around the communities of Anna Maria, Bradenton, Bradenton Beach, Ellenton, Holmes Beach, Lakewood Ranch, Longboat Key, Myakka City, Palmetto, Parrish, and Sarasota. Call us at 941-761-9338, or visit us online at www.secureaging.com.
