Poor planning leads to greater stresses in retirement.
We you born between 1946 and 1964?
If yes, then you are a Baby Boomer.
There is a 47 percent chance you are already retired.
If you planned well financially, you will have set yourself up for success in your retirement years.
Congratulations!
According to a recent CNBC article titled “Baby boomers face retirement crisis — little savings, high health costs and unrealistic expectations,” not everyone has done so.
What are the most common planning mistakes?
Not saving enough.
You cannot expect Social Security to supply all of your retirement income.
If your company does not have a pension plan (and very few do, outside of government), you are left with only one other income source—your personal savings.
Nearly 45 percent of Baby Boomers zippo in personal savings for retirement.
Yikes!
This leads us to the second major mistake.
Underestimating health care costs.
As you age, you will have more medical issues.
Many people do not account for these costs in requirement.
Instead, they assume Medicare will cover whatever they need.
Wrong again.
Anticipate and save for health care costs.
Purchase long-term care insurance as well.
In addition to underestimating health care costs, Baby Boomers often make another significant miscalculation.
Underestimating retirement income.
On average Americans ages 65 to 74 spend $55,000 annually.
Most people do not account for this.
The result?
Many must downsize, ask their children for help, or go back to work.
None of these options is ideal.
If you have not yet retired, make like a Boy Scout - and be prepared!
You will be glad you did.
Reference: CNBC (April 9, 2019) “Baby boomers face retirement crisis — little savings, high health costs and unrealistic expectations”
Comments