People always say, “You shouldn’t have any regrets.” But sadness over life choices seems to be part of the human condition. And that seems to be the case for many retirees as well. Recent research shows that retirees can point to clear planning steps that can have a dramatic impact on their retirement readiness.
Most retirees regret it
The majority of people who quit their jobs regret it.according to investigation According to a study conducted by Lincoln Financial Group, 62% of retirees would like to go back in time and plan for their retirement differently. bank rate 74% of retirees regret their financial choices.
Here are 10 ways today’s retirees say they wish they had planned differently and how they could have done better.
1. Save even more
According to the annual report study According to the Transamerica Retirement Research Center, a whopping 78% of retirees wish they had saved more.And in EBRI in 2023 investigationSo we asked retirees to find out more about what financial advice they would give their younger selves.The majority (70%) advise Change your savings habits by increasing or speeding up your savings and investments.
Retirees who were not very confident about their financial situation said that not saving was a big regret. Other savings regrets include not making the most of your 401(k) plan, not enrolling in the plan sooner, and not saving the maximum amount allowed by your plan. You can
Kelly Sudan of TREW Financial & Benefits Group, Inc., with offices in Chicago’s North Shore suburbs and Las Vegas, says too many soon-to-be retirees put off saving for retirement.
“Many people wait until the very end of retirement to start planning for retirement,” Soudan says.
don’t make this mistake
Adequate savings are essential to ensure your future financial security. Also, it’s easy to start saving in your 20s, but it’s never too late. Use the NewRetirement Planner to determine how much you need to save to support the life you want and find strategies to reach your goals.
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2. Document your overall plan
Whether you’re far from retirement, nearing retirement, or already retired, a written plan can help ease your fears. However, a Transamerica study found that only 18% of retirees have a written plan.
Creating a written financial plan can help you feel more confident about your finances (Schwab Modern Wealth investigation 63% of people with a written financial plan feel financially secure, but only 28% of people with a plan feel the same level of security. ).
Planning takes time, but we make it easier
Creating a written plan takes time, and we strive to make it easier. NewRetirement Planner is widely considered an online planning system. Forbes magazine calls this a “new approach to retirement planning.” It is comprehensive, reliable and helps you find opportunities to gain more wealth and security.
3. Plan more carefully what you want to enjoy in retirement.
According to Fidelity Investments, two-thirds (68%) of pre-retirees do not complete a budget for their expected income and expenses.
And retirees may actually be underestimating how much retirement fun will cost, says MLN Retirement Planning, with offices in Grayslake, Ill., and McHenry County, Ill. Mike Niemczyk of the company said.
Although many older Americans believe they will spend less in retirement because their income is lower, financial experts believe that most retirees will likely spend more, at least in the first few years of retirement. Says.
“We’re finding that retirees are now spending more on things like going out and going out to dinner with friends and going on vacation,” Niemczyk said.
When Soudan helps clients plan their retirement budgets, he asks them what they do for fun on the weekends. “They might say, ‘Let’s play golf and then go out to dinner,'” Soudan said. “I tell them, ‘When you retire, every day will be Saturday.’ You have to think about what it takes to live like it’s Saturday seven days a week.”
“They didn’t plan ahead,” Niemczyk says of the challenges many clients face. “Many people run out of money before their lives end.”
Know what you want (and how much it will cost)
To plan for your retirement, check out these resources:
4. Healthcare planning
Not being able to afford to eat out is a problem that can be overcome. An even bigger problem is knowing whether you can afford your medical expenses.
According to a report by AARP“Only about a third (36%) of people aged 60 to 64 have estimated how much money they need to save and are trying to set aside money to cover these expenses in the future. of adults (40%) are slightly more likely to have saved than 50-59 year olds (35%), but these differences are not statistically significant.
Two-thirds of respondents have given at least some thought to costs, but only 52% are confident they can afford them. In fact, less than two in ten (16%) are confident they will be able to afford their health care costs in retirement.
Before you retire, you should get a reasonable estimate of your medical expenses and make sure you can afford them. Medicare doesn’t cover everything, and most people spend hundreds of thousands of dollars in out-of-pocket medical expenses in retirement, and that doesn’t even include funding for long-term care needs.
Don’t regret not planning for your medical expenses
NewRetirement Retirement Planner provides a personalized estimate of your medical costs. It can also help you understand how to plan for long-term care if you ever need it.
5. Learn more about personal finance
According to a study by Transamerica, a whopping 66% of retirees wished they knew more about financial planning.
There are many things to consider, including investing, budgeting, debt, and taxes.
I hope you enjoy reading articles like this.
6. Plan and take action to protect your money from taxes.
Taxes are a big consideration for retirees. Uncle Sam can take a big bite out of your nest egg. “Many older Americans with 401(k) plans don’t realize that the money is taxed when they cash out,” Sudan says.
“If you have $500,000 in your 401(k), you could be taxed 30 to 40 percent,” he added.
However, with proper planning, there are many things you can do to protect your money from taxes. Some advance consideration is required.
Understand your future tax burden
With NewRetirement Planner, you can see your potential tax liability for the next few years and get ideas for minimizing this expense. Although they require forethought, Roth conversions, shifting taxable income, and other strategies can yield significant savings over a lifetime.
7. Anticipate the unexpected
When you retire, you need a flexible financial plan that will ensure you have enough money to live on even when the unexpected happens. Because the only thing you can expect in life is the unexpected.
Inflation is putting stress on many retired households. The survey suggests that people did not fully consider the possibility of price increases.
The list of things that can go wrong is almost endless: inflation, natural disasters, fraud, families in need. Here is a list of 21 risks you face and how to plan for them.
8. Income planning
One way to protect yourself from life’s many unexpected risks is to make sure your source of income in retirement is reasonably guaranteed. And, according to Lincoln Financial Group, more than one-third of retirees regret not choosing investments that provide a steady income.
If you need to save while working. Thinking about how to turn your savings into income is something you have to do in retirement. Having a steady source of income gives retirees peace of mind.
9. Reduce debt
Debt, especially credit card debt, increases the cost of living. The interest you pay increases the price of goods and services and reduces the amount of money you have available to spend and save.
The burden of debt can rapidly erode financial security, increase stress, and impair one’s ability to enjoy a comfortable retirement. This is because your options to earn more money or extend your tenure are much more limited than they would be while you were employed.
One-third of retirees regret not paying off their debt sooner.
10. Retire early
Not all retirement regrets are related to poor planning. In fact, I often hear people lamenting that they didn’t retire sooner.
The transition to retirement is often difficult, especially among people who have always been financially responsible. It may seem presumptuous to leave behind a source of income or a habit of saving. If you retire too late or after many years, you may end up regretting how you spent your time, which can be more demoralizing than financial grief.
If you are, consider these nine ways to overcome the fear of running out of your nest egg.