RadioMD: Staying Well

The 8 Biggest Retirement Mistakes and How to Prevent Them

September 22, 20149 min
What do you need to do to make sure you are able to retire?Have you dreamed of your retirement since you've started your first day of work? Some days it can seem like your retirement is a far-fetched fantasy that you will never see. However, this does not mean you shouldn't know your options and begin planning for that day.Unfortunately, researching the options of retirement can be confusing which can lead to unrealistic planning of your future. In fact, according to the Federal Reserve, one in five people who are near the average retirement age have ZERO money saved. Also included in the study conducted by the Federal Reserve, 41 percent of people between the ages of 18-29 said they have never thought about retirement.Why does it seem people aren't concerned with their retirement planning?Not saving enough money is one of the biggest retirement mistakes you can make.It may seem foolish to not save money for your retirement, but not many people have that option. If you're stuck at a job earning low wages, or are can only be part-time, your current paychecks could be going to necessary needs in order to survive (food, rent, bills, etc.). Thinking about retirement might not even be an option.Other than not saving, what are some other retirement mistakes?Another retirement mistake many people make is assuming that you have control over when you will retire. You may have this idea in your head that you are going to retire at a specific age. However, what if an unexpected illness occurs where you need to quit your job? What if there is a major downsize at the company you work at? The truth is you never really know what to expect at any job, so it's always important to start saving any amount of money at an early age.The eight BIGGEST retirement mistakes:

Not saving enough
Assuming you have control over when you will retire
Ignoring tax impact
Unexpected medical costs
Failing to lock up lifetime income
Retiring too soon
Drawing down retirement savings too rapidly
Underestimating longevity

Journalist and finance author, Dan Kadlec joins Melanie Cole, MS to discuss the biggest retirement mistakes and what you can do to prevent them.

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