The biggest threats to achieving the retirement of your dreams are actually very easy to control if you recognize and deal with each of them. You need to acknowledge these potential retirement threats and develop strategies to make sure that you don’t fall prey to one of these potentially devastating actions. It is also important to note that some of these retirement threats might present themselves very early in your life so strategies to avoid these threats need to be devised long before you get into your 60’s.
Quitting work too early
Work provides not only income but also access to retirement saving options and many times health insurance coverage. Retiring too soon might cause you to also draw social security early which means less benefits. Finding the right age to retire generally requires well thought out plans.
Ignoring your health
Health care costs are some the largest expenses in your retirement years. Living a healthy lifestyle while you are younger is extremely important to improving your chances of having good health in retirement. Quit bad habits that can be detrimental to your health and embrace a healthy lifestyle.
Piling on debt
Not matter how close you are to retirement, building a large amount of debt is always detrimental to your retirement because you are diverting funds to pay interest instead of using those funds for retirement savings. It is also extremely important to not enter retirement with significant debt obligations.
Failing to contribute the maximum
As soon as you can reach the maximum retirement contribution limit for your age the more likely you will have the retirement fund required for your planned retirement years. Even though it will be painful to reach those limits, making it happen soon is always the best option for later in life.
Putting children before your retirement
This one is always difficult but funding your child’s education before you are reaching the maximum in retirement contributions is going to lead to your retirement fund being less than desired or even needed. There are several ways to pay for your child’s education but you only have one option for funding your retirement. Make retirement the number one financial priority and then the rest of the your financial decisions will support that effort.
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Categories: Planning, Retirement