When was the last time you looked at your retirement accounts? For so many people, thinking about retirement is the last thing on their minds. This is unfortunate because retirement should be a time when you are enjoying the fruits of your labor, not feeling worried or anxious. For those who haven’t retired yet, perhaps this list of the top 4 regrets in retirement will give some insights as to what you need to look out for.
Not Saving Earlier or Not Saving More Money
Yes, many people wished they started earlier. The younger you start saving, the more compound interest will be on your side. If you invest when you are in your 20s for example, you will most likely need to save less every month compared to someone in their 40s. Those who are younger may also have fewer expenses to worry about, such as taking care of a family or health concerns, making it easier to save more money.
Retirees have also found that they underestimated how much they needed to save to enjoy a comfortable retirement. If you plan on doing activities such as traveling, it is better to save more money. While it is true that you can enjoy life with not a lot of money, some retirees don’t even have enough to meet their basic needs.
Forgetting to Plan for Healthcare Costs
Most retirees find that they haven’t anticipated how much healthcare will actually cost them. Depending on your situation now, you may need to save even more for the future. According to some estimates, many retirees will need a minimum of $220,000 to cover medical expenses, assuming a retirement age of 65.
Taking Out Social Security Too Early
It’s great that you can rely on Social Security to help you out, but many retirees who took it out too soon have ended up regretting it because there is only so much to go around. Those who thought that social security was there to supplement most of their retirement income are finding out that it’s not true at all. Many wished they would have waited until they were at least 70.
No Lifestyle Goals During Retirement
Many retirees found that their identities were heavily tied to their careers which resulted in an identity crisis when they left their jobs. Sure, it’s great if you have enough money saved, but you can’t enjoy your retirement if you are not happy. Many have wished they had thought about their plans for after retirement, including travel, hobbies and even volunteer work.
It’s a sad fact that there are so many people in my home state of Pennsylvania that don’t feel confident that their savings will cover them for retirement. If you are proactive about it now, you don’t have to face the possibility of not having enough in savings for your future. Please let me know how Strong Tower Associates can help by calling 814-325-9806 or emailing
Ash Toumayants is a financial advisor and the founder of Strong Tower Associates. For over a decade, he has helped hardworking people across Central Pennsylvania prepare for retirement. Fueled by a passion for helping people see through the veil of confusion that shrouds the financial world, his goal is to educate his clients so they can make more sound choices regarding their financial future. A Penn State graduate, he currently lives in State College with his lovely wife, Noelle, and their four adorable children. Learn more by connecting with Ash on LinkedIn or emailing [email protected].
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