It’s probably been a long time since you were a rookie at anything. But you’re probably a rookie at retirement. Beginning your retirement adventure can be extremely exciting. But it’s probably a bit unsettling too. Especially since you’re going from a full-time work schedule to having a wide-open schedule. And it might be hard for you to adjust. But there are some retirement mistakes that you can avoid early on, so you can actually enjoy your retirement.
Not following a set budget
Maybe you think that you won’t spend much money in retirement. And maybe because of that, you don’t think you need to track your bills. But your senior living costs could end up being higher than you might have expected.
For example, you might think you won’t spend a lot on transportation without the daily work commute, but if you start to drive more to get out of the house your fuel costs may end up being about the same as when you were driving to work day-in and day-out.
Not establishing a savings withdrawal strategy
Prematurely depleting your nest egg in retirement is the last thing you want to do. That’s because it could lead to a lot of financial pain during the latter stages of your senior years. At that point, you’re going to be less likely to be able to supplement your Social Security benefits with a job. Plus, you all don’t want to just withdraw from your savings without putting any thought into it. Come up with a strategy first.
A lot has changed with withdrawal rates in the last several decades too. A 4% annual withdrawal used to be considered acceptable for retirement savings. Now a rate of 2.5% or 3% may be a better guideline to follow.
Choosing the wrong Medicare coverage
Once you retire, you could be eligible for Medicare. But be careful. You could end up overpaying for healthcare and taking too much out of your savings.
The good news is that you have options with Medicare. You can stick to the original Medicare coverage and sign up for a Part D drug plan, or you can get an all-in-one plan with Medicare Advantage. There are pros and cons to both. Just do some research to see what’s going to work best for you.
Start off on the right foot by not making common retirement mistakes
Going into retirement means a whole new schedule and a new set of financial decisions to make. These are all beginner retirement mistakes, and you can prevent them. That way you can focus on enjoying your new stage of life.
You don’t to make these retirement mistakes
You don’t want to make mistakes going into your retirement. Working with qualified advisors like the advisors at Teton Wealth Group can really help you get to where you want to be in your retirement.
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