Planning for retirement today takes smart planning. Additionally, the earlier you start, the more likely you’ll be able to retire when you’d like. Does it seem like you’ll never be ready to retire? Here are 10 reasons why that might be true.
1. You Didn’t Save
If you failed to save for retirement early, you probably don’t have enough saved to maintain your lifestyle into your golden years. Failing to adequately save money may leave you living paycheck to paycheck even into your retirement years.
2. You Have Too Much Debt
With too much debt, you may not be able to retire until you’ve paid down what you owe. Although some may suggest dying with your debt, you wouldn’t want to put a burden on your estate for your heirs. Instead, you should focus on paying down your high-interest debt as soon as possible so that you can comfortably retire.
3. You Failed to Plan
If you fail to plan for retirement, you’re planning to fail. You should give thought to where you will live in retirement, how much you’ll need to budget for monthly, and how long you’ll need to save for based on how many years you plan to retire. Retirement costs like healthcare, housing, and daily expenses add up fast. Using a retirement calculator can help set you up for success in the area of retirement planning.
4. You Didn’t Ask for Help
Getting your estate in order isn’t a task that you should take on yourself. An estate planning attorney can help you draw up your will, making sure your assets are protected and distributed accordingly.
5. You Made Excuses
Kicking the can down the road is a major mistake when planning for retirement. If you keep making excuses like you have plenty of time until you retire, you most likely will never be able to retire comfortably.
6. You Enjoy Work Too Much
If you fail to create meaning outside of your job, you’ll most likely never want to retire. You should focus on creating a full life outside of your job before you consider retiring. Otherwise, you’ll probably be bored and unfulfilled when you leave your work.
7. You Rely on Social Security Alone
Social Security benefits are meant to supplement income, not replace it. If you rely on these benefits alone, you may not have enough to live on. Plus, if the program fails to be funded in the future, you may not have the opportunity to collect. It’s best to have a backup plan in case you don’t receive your Social Security benefits.
8. Inflation Devalues Your Money
Your savings lose value every year if they’re not growing faster than inflation. Instead, you should focus on investing your money and making your dollars work for you.
9. You Cashed Out Your Retirement Accounts Early
If you cashed out your retirement accounts early for unexpected expenses, education, or healthcare costs, or to buy a house, you may have sabotaged your dreams of retirement. Even though it may seem like a good idea to withdraw these accounts early if you need to, you’ll probably have a hard time growing your future nest egg again. Plus, you’ll never get the money back that you paid in penalties.
10. You Gave into Lifestyle Creep
Every time you got a raise, did your monthly expenses grow? Instead of letting this extra money boost your savings, you may have let your expenses grow instead. By not curbing lifestyle creep, you may have made it harder to retire when you want.
At the end of the day, it’s important to put planning into your retirement. If you don’t, you may find yourself 70 and still working for one reason or another.
How are you preparing for retirement? Let us know how you plan to make retirement a reality.
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Teri Monroe
Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.
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