Smart Living: Four retirement mistakes
ORLANDO, Fla. (Ivanhoe Newswire) – About 10,000 baby boomers turn 65 every day! If you’re one of them you might be thinking about retirement. But do you know what mistakes to avoid? Here is what not to do so you can enjoy your golden years.
How do you imagine your retirement?
One common mistake is retiring too soon. Most retiree’s sign up for benefits starting at age 62. But if you wait until the full retirement age of 66, you’ll receive 25 percent more per month for the rest of your life. If you wait even longer, your benefits payment will keep going up every year until you reach age 70.
Mistake number two, miscalculating the number of years you’ll live after retiring. One survey found more than half of Americans underestimated their life expectancy. The social security administration has a life expectancy calculator that can help you predict how long you’ll live based on age and gender.
Mistake number three, not factoring in medical costs. According to fidelity, 65-year-old couples can expect to spend about $260,000 on healthcare throughout their retirements. You might want to consider supplemental health insurance.
And the last mistake? Underestimating your cost of living. Don’t think you’ll do or spend less when you retire! To get an accurate figure, use a retirement calculator like the one offered by AARP.
Another mistake is making expensive purchases too soon. Experts say to wait at least one year into your retirement before buying a new house, car, RV, or other big money item.
Contributors to this news report include: Julie Marks, Producer; Roque Correa, Editor.