Ways You Can Ruin Your Retirement

shutterstock_5725849Everyone will eventually reach that period of retirement as they approach their golden years. The experience will be dependent on how one prepares for this stage in life. Having a comfortable retirement requires saving up money early and establish a fund that will take care of a retiree’s financial needs during the later stages in life. Despite all the preparations, there can also be ways that one can ruin an otherwise stable retirement. Here are some of them.

Retirement living beyond what you can afford

Some people may think that retirement is a time to enjoy and have fun after years of toil and hard work on the 9 to 5 grind. But along the way of having fun, retirees might incur expenses that may be making a substantial dent on their retirement account. Expenses for trips, vacations and others may continue to mount. If this habit continues, it can deplete any retirement fund in no time. Retirees should learn how to manage their retirement fund more efficiently. This means trying to avoid leading a lifestyle that they cannot afford to follow.

Getting into retirement too early

Some people dream of retiring early to enjoy life while they can. However, this will depend on how well you prepare for it. Some people chose to retire early simply because think that they already can. But people should be aware of missed opportunities as a result of the decision. People can miss out on potential earnings they can otherwise build up by retiring early. There are also issues such as receiving a smaller Social Security check as a result of early retirement. Early withdrawals on retirement accounts can also lead to charges and penalties that can reduce the amount a retiree receives.

Going into total retirement immediately

Retirement can be life changing. Not only will people need to get accustomed to a new life and new habits, people also need to take stock of all that free time on their hands. Sometimes it can be quite overwhelming. It can be quite a challenge for some people to handle total retirement. Without a plan, some retirees can get bored in just a short time. They might feel down, depressed and useless with nothing else to do. Going into total retirement all at once can sometimes ruin the experience. In order to get accustomed to it, people should consider easing into retirement gradually. This means doing some things with the semblance of previous activities, such as taking a part-time job or even studying. This will help most people easily adjust to a life in total retirement over a certain period.


Posted by Ardent Editor on Aug 28 2014 in Retirement 101 Tags: , , , ,

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