6 Common Retirement Mistakes That You Can Easily Avoid

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I am so glad I found this article on the most common retirement mistakes. I am excited to start taking control of my personal finance, build my wealth, saving for retirement, and strive for financial freedom. These are GREAT reminders of things to avoid when going into retirement.

What’s going on Savvy Savages! We have an awesome guest post today written by Sarah Smith on the common retirement mistakes that many of us might be making. Sarah has been a personal finance author for the last five years. She is also an independent passionate finance and investment advisor. She regularly posts at www.personalincome.org. Enjoy! – T$C


Retirement might seem easy, but it is not, ask people who had to spend a lifetime in their workplace and then have to leave it. I remember my mother retiring, she spent almost 35 years in a college serving as a professor and one day, of course, she had to leave.

There are so many questions a retiree has in mind with so many things to worry about. The question that seems to haunt them the most is, what’s next? And here is where the problem begins. With this question comes panic and with panic comes wrong decisions.

Here are six of the most common retirement mistakes you should avoid making.

 

1. Picking The Wrong Investments

People who worry themselves a lot tend to invest in things they do not know enough about. Just a recommendation from someone and here they go invest. Do not hurry with this, your money is not running away. Take the time to learn about investments and what options work best for you.

Some people tend to buy the house of their dream and become house rich and cash poor. Do you really want to loan cash for your basic utilities?

What to do?

Take a market survey and list down the opportunities in front of you. Once you have them listed out, sort by long and short-term benefits. There are many investment opportunities to sort through!

Related: Why Millennials Need to Start Saving for Retirement

 

2. Employment From Someone You Might Regret 

People who have worked hard their entire life might get anxious going into retirement. Fear of not having enough money still coming in can cause retirees to look for alternative income sources.

Many retirees are not familiar with all the scams on the internet. The unfortunate truth is some company’s prey on a retiree’s looking to make a quick buck or increase their income quickly.

What to do?

Again, research for what you are going to be involved in, if you are not familiar with the things you are dealing with then ask someone you think can assist you in the best way possible. If it’s too good to be true it is!

Related: 7 Legitimate Ways To Earn Money Online In Your Spare Time

 

3. Understanding The Health Problems

Most companies nowadays bear your medical expenses. So people tend to not worry about the bills they have to pay to the hospital.

What happens is when you get retired you are so in to not worrying about your statements that you continue it that way, and sometimes, people forget that they are not in their 20s or 30s anymore there are more chances of them getting sick than before.

What to do?

Keep a close eye on your health condition, take precautions to avoid any problems but save up for any health condition you may face.

 

4. Spending Too Much

Retirement brings sadness but also a lot of money. Some people get so excited about the retirement money they spend recklessly without giving their future any thought.

They buy everything they ones just dream about. That car, that house, that Rolex or a trip to Paris but little do they realize that there is a lifetime ahead of them, how are they going to pay for their necessities.

What to do?

PLAN and EXECUTE! Nobody is asking you to live a deprived life after so many hard-working years, split the amount, invest some, keep some for day to day use and do whatever you want with the rest. Keep the pension in mind too.

Related: 13 Frugal Living Habits That Will Help You Save Money

 

5. Not Staying Active

Some people get so tired after their years of service they think being a couch potato is the only thing that suits them. They cannot be more wrong.

I know how working can be tiring, I have not come to retiring age, but I am already tired and need to rest all the time. Once you are not working full-time it’s of the utmost importance to keep your body, mind, and soul healthy.

What to do?

Rest as much as you can and as much as you want but then strike back with a healthy routine. Try to meet people around you, go for a walk, ask your children and grandchildren to take out some time for you. Make these the best days of your life.

Related: 5 Frugal Ways to Get Fit and Save Money

 

6. Not Changing At All

Changing too quick or unnecessarily is terrible but not changing at all is even worse. People keep on living the life they once were, but retirement is a significant change, so you have to change your lifestyle too.

What to do?

Evaluate everything around you and make a plan accordingly. Keep your finances, health, needs, wants and routine in mind.

 

BONUS: 401(k) vs. Roth IRA

I am so glad I found this article on the most common retirement mistakes. I am excited to start taking control of my personal finance, build my wealth, saving for retirement, and strive for financial freedom. These are GREAT reminders of things to avoid when going into retirement.

Found on The Penny Hoarder


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Hey, we are Kelan & Brittany!

After paying off $25,000 of debt in only 5 months, God called us to help other families manage their money, organize their life, and most importantly, find their freedom.
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