Retirement Faux Pas

We’re all about helping you save. So don’t make these mistakes that could leave you living off ramen noodles in your senior years.

Today’s 65-year-olds can expect to spend about 20 years in retirement should they quit their jobs right now. However, the Social Security Administration reports that one quarter of those who are age 65 today will reach age 90, and 10 percent will make it past age 95.
Those numbers add up to a lot of time spent living off retirement savings. If you want to be comfortable during those years, finance experts say you should avoid these 10 retirement blunders.

No. 1: Not having a plan for retirement money.

Retirement planning experts say the biggest blunder workers make is simply not having a plan for their money in retirement.

Blunder No. 2: Forgetting about inflation when making a plan.

Another mistake people make is forgetting that a dollar today isn’t the same as a dollar 20 years from now. Inflation can erode purchasing power and needs to be calculated into a cash flow scenario or retirement plan. Assuming that healthcare costs are covered, At the very least, retirees should make sure their investments are keeping up with the rate of inflation.

Blunder No. 3: Failing to save enough money for retirement.

Of course, the best plan in the world can’t compensate for a retirement account with scant money in it. Saving shouldn’t be that hard – and if it is, it’s probably because you didn’t start soon enough.

It’s never too late to learn how to save for a healthy life and a better tomorrow.