With the “silver tsunami” of retirement coming our way, a record high of 4.1 million Americans are expected to turn 65 in 2024. These retirees will be navigating retirement at a time when many are unrpespared for their retirement.
One of the best things to do is look at what the previous generation did and what mistakes they made and learn what not to do. Angela Dorsey, CFP®, MBA, is a Founder and Financial Planner at Dorsey Wealth Management. She specializes in financial planning for retirement and shared the three top retirement mistakes she sees retirees make in and before retirement.
Moving to a Different State
One of the worst mistakes I see retirees make is moving to a different state with the goal of lowering their expenses. For example, moving from California to other states you may find that the difference in your overall expenses may not be as large as you think. Real estate may be cheaper than in California, but other costs, such as utilities, need to be considered.
Not Creating a Realistic Retirement Budget
It’s important to create a realistic budget. In retirement, It can be easy to overspend without realizing it. Overspending, even for a short period, can shave years off the longevity of your assets. The budget doesn’t need to be perfect, but it should be something you can honestly stick to.
Try tracking your expenses for a couple of months to get an idea of what you spend currently. Once you have all your costs outlined, consider if there are areas where you can cut back or items that will increase in retirement.
Taking Social Security Too Early
If you don’t need the money earlier, waiting until you are 70 is a great way to increase your payments. While eligibility to collect social security starts at age 62, your benefit will increase about 8% each year you wait until age 70. After age 70, there is no additional benefit to waiting.
13 Signs You’re Financially Better Off Than the Average American
Achieving financial stability where you can meet your current financial obligations comfortably and still plan for the future is a goal everyone strives to attain.
However, while you may be able to pay your bills, save for vacations, and afford to dine out occasionally, you may feel left behind, especially if you compare yourself with your peers or others with higher salaries. You may be doing way better financially than the average American.
13 Signs You’re Financially Better off Than the Average American
8 Things the Middle Class Won’t Be Able to Afford in Five Years
Unfortunately, inflation’s vice grip on the middle class shows no sign of relenting anytime soon. Here are eight things about to get significantly more expensive for those in the middle of the pack to fit into their quickly tightening budgets.
8 Things the Middle Class Won’t Be Able to Afford in Five Years
20 Luxuries That Were Attainable 50 Years Ago That Now Escape the Middle Class
Specific experiences and commodities from the past were part of everyday life, accessible to most, and cherished by many. Fast forward half a century, and you’ll find these once-common threads have become silken and exclusive, reserved for the wallets of the well-to-do.
The landscape has shifted from leisure activities that bond families and friends to necessities that ensure health and happiness.
20 Luxuries That Were Attainable 50 Years Ago That Now Escape the Middle Class
14 Companies That Will Give You Free Food and Products Just for Asking
More companies are now offering free samples to get customers to try a new product. Over time, these companies gain loyal customers and can increase their sales. As a customer, you also get to test out free products and sample foods you’ve never tasted.
Here are some companies that will give you food and products for free just by asking.
14 Companies That Will Give You Free Food and Products Just for Asking