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Are You Making These Common Retirement Mistakes?
Smart Solutions • February 2014
In today’s uncertain economic times, retirement is a hot topic. Many Americans are concerned they will not be able to save enough to retire comfortably — or at all. Increase your chances of achieving your retirement goals by avoiding these three common mistakes.
Mistake #1: Not Knowing How Much You Need
Whether you’ve been saving for years or you’re just starting out, it’s important to gain a realistic awareness of how much you will need to retire comfortably.1 A simple retirement needs calculation can factor in your current savings status, sources of income, age expectancy and desired retirement lifestyle to give you a target amount to work toward.
Mistake #2: Forgetting to Account for Inflation
Each dollar you save will lose some of its purchasing power every year. Failing to account for this inevitability in your retirement needs calculation could significantly weaken your savings. Be sure to diversify your investments to protect against inflation
Mistake #3: Underestimating Healthcare Costs
Americans are living longer, and medical costs are increasing faster than almost any other consumer good or service.2 Keep in mind that Medicare will not cover 100 percent of your medical expenses and it doesn’t include dental, vision or hearing care. Consider purchasing long-term care insurance for additional protection.
Interested in learning more?
- "EBRI’s 2013 Retirement Confidence Survey: Perceived Savings Needs Outpace Reality for Many," Employee Benefit Research Institute, March 19, 2013, accessed Dec. 13, 2013
- Five Common Retirement Mistakes," Fox Business, July 13, 2012, accessed Dec. 13, 2013.
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