From the moment they begin their careers, many look forward to retirement. They see retirement as a time when they can kick back, relax and enjoy their life without thinking about work. There are some retirement mistakes that individuals can make when planning for their retirement that can turn this would-be enjoyable time into one that is full of regret.
Getting Away from It All
The idea of moving away from everything and everyone you know may seem exciting for many new retirees. At times, the opportunity even exists to reduce living expenses and make retirement money last longer by moving away. However, moving away from everyone you know has the potential to be one of the biggest retirement mistakes you can make. Friends, family members and work associates are a support system. It is difficult to start from zero when moving to a new place. It may take years to find a new dentist, a new doctor or even a new mechanic for your vehicle who you trust. If any major emergency arises, the expense to cover that emergency could be exacerbated simply because there was no support system to help you through it.
Retiring without Health Insurance
Most retirees will retire with relatively good health. Some may think their health will hold out even if there is a lapse in time between when they retire and age 65 when they qualify for Medicare. Unfortunately, experience shows that retiring without health insurance is a mistake. Healthcare costs, without the protection of health insurance, can be overwhelming. For this reason, if you are looking to retire before Medicare starts paying, take steps to guarantee that your health care needs are covered. Individuals who work for larger companies, those with 20 or more employees, may be able to buy into their former employer’s health insurance. If your spouse is continuing to work, there may be an option to join their health insurance. Insurance exchanges and tax credits are also an option available to younger retirees.
Spending More Money Than You Have Coming in
Retirement will lead to a reduction in some expenses. Included in these expenses will be transportation to work, food for work and any work attire. However, other expenses arise that will quickly take their place and may even outpace them. An example of this is travel costs. Now that a retiree has more time, they may want to use some of it to see the world. Traveling is expensive. Very quickly, the money that was supposed to last for many years, disappears. Failing to set a budget, and failing to live within that budget is one of the biggest retirement mistakes.
There are a lot of serious decisions connected to retirement planning. The best way to make sure that your retirement is secure is a discussion about retirement and estate planning with lawyers like those at Felinton Elder Law and Estate Planning Centers.