It’s considered a sound strategy to prepare for retirement right when you start working. This way, you’re prepared financially to afford a comfortable life once you’re done working so you can enjoy your golden years. But many times, it doesn’t work out as smoothly as it does in our hopes and dreams.
In an effort to help you along your path if retirement is closing in on your future, Bushwick Center for Rehabilitation and Nursing has a look at five retirement regrets from both retirees and financial planning experts who work with seniors.
- Waiting Too Long to Save
Studies show that this is the top regret from retirees, either because they could not retire as early as they had to put too much of their earnings into savings in their 40s and 50s. Compound interest from long-term savings accounts like 401(k)s are the best tool you have in your retirement planning, and giving those accounts as much time as you can to build up is vitally important.
- Having Too Much House
The goal should be to be debt-free going into retirement, but many approaching retirement age found themselves not able to retire because of payments they still owed on large homes they purchased in their late-30s or into their 40s. And even if the house is paid off, a house that’s larger than you need with the kids moved out can still cost you a pretty penny in homeowner’s insurance and property taxes.
- Carrying Further Debt
In addition to remaining house payments, seniors say that other forms of debt seriously hampered their retirement plans. Besides a mortgage, the most popular forms of debt that caused problems were car loans and credit card debt.
- Not Knowing How Much They Needed
Seniors need to know how much money they’re going to require to retire. You’ll need to add up income from pensions, Social Security, and retirement accounts to see if it will be enough to live on. Retirement calculators or financial planners can help you with this task.
- Not Being Frugal Earlier in Life
Retirees understand the meaning of being frugal in order to either live comfortably or save to go on that vacation they have always wanted. But a common regret of retirees is that they weren’t frugal earlier in life in order to have more money saved up.
To learn more about Bushwick Center for Rehabilitation and Nursing and all of the services they offer, visit http://bushwick-center.facilities.centershealthcare.org/.