One of the most exciting times in someone’s life will come when they are able to leave the workforce and retire. The average American will live around 20 years after they have retired from the workforce. Due to this, proper retirement income planning is very important. There are a variety of retirement money-wasters that should be avoided that can help to ensure your savings last.
Staying in Large Home
A hard decision that will need to be made while retirement income planning is whether to stay in the same home that you spent the prior few decades in. Most people who retire will find that they no longer need the same amount of space as they did in the past. Larger homes also tend to have higher real estate taxes, increased energy bills, and more maintenance expenses. A better option would be to sell your home and downsize into something that is more manageable and will cost less.
It is natural to want to make sure that your kids are properly taken care of. While most would assume that their kids will be self-sufficient by their mid-20s, there are plenty of situations when retirees will find themselves continuing to support their kids. If this is the case for you, finding a way to avoid supporting your kids is very important. You should help them find ways to improve their earning potential, budget their own money, and make sound financial decisions so they can support themselves.
Taking Social Security Too Soon
Another factor that should be considered when you are preparing for retirement is determining when you should take Social Security. If you qualify for Social Security retirement benefits, you can start to claim them as soon as you turn 62. However, the longer you wait, the greater they will be. The most you can earn will occur when you turn 70. Ideally, you should wait to take the benefits if you can as it could maximize your annual benefits.
Not Taking Advantage of Discounts
Senior citizens today will find that there are many discounts available to them that could help to save them money. This can include discounts on travel, dining out, or purchasing home goods. By joining AARP and other senior programs, you can learn more about discounts available to you.
Retirement income planning is very important for all seniors. Part of this plan should include finding ways to cut back on expenses. Following these tips can help you to avoid overspending on unnecessary things.