Common Excuses That Can Affect Retirement Savings

Many people have different ways of handling the topic of retirement. While others try to do something about it early in their working lives, others simply shove it down as the least of their priorities. And when it comes to saving for retirement, other people can have a number of excuses that can affect their retirement savings. Here are some of them.

Continue working even after retirement.

While some people have foreseen that they may not have enough money saved up for retirement, some still neglect to do something about it. Instead, they make excuses such as they simply have to continue working even after they retire. It may look like it is a valid excuse that can help address their retirement needs. But working after retirement is not always a sure thing. There are many factors such as physical ability, availability of work, as well as health reasons that may prevent retirees from working. And when that excuse falls down the drain, it is the retiree who will surely suffer.

Waiting to save up until you earn more.

Others make the excuse of saving up for their retirement fund until they have already earned more. But some people forget the fact that higher earnings usually lead to higher standards of living. As your income goes up, so does your living expenses. This excuse will also cause your previous years of saving potential for retirement as wasted opportunities. Setting aside something for your retirement fund even when you are in the low income bracket. The idea is trying to build the habit of saving no matter the income. Waiting up until you are in a higher income bracket will not help develop that habit of saving for you.

Prioritizing the kids’ college fund over a retirement fund.

When it comes to those with kids, a common excuse for not saving up for retirement is putting their kid’s college fund above their own needs when they grow old. But this can be a case of wrong priorities. Failing to save for retirement just because you need to pay for your child’s college can be unfair. While kids may have a chance to pursuing college later if they cannot afford it yet, the same cannot be said for retirees. Put more priority on saving up for your retirement fund since your time to do so is rapidly closing up. Your kids can survive even without going to college.

 

Posted by Ardent Editor on Aug 4 2017 in Financial Planning

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