3 Ways to Derail Your Retirement Planning

By Elsie Dudukovich0 Comments

You’ve been working hard all these years.  You’ve been careful with your income and faithful with setting aside savings.  You’ve thoughtfully researched and chosen your retirement investments. You know you’ll still need to be careful with spending your retirement funds when the time comes, but you’re feeling pretty good about where you stand. 

Now the idea of retirement and future plans that started with “Well, when I retire…” isn’t so far off.  As you get ready to enjoy the results of your hard work and careful planning, here are three common mistakes taken from the Huffington Post people make just before retirement.

Mistake #1: You stop saving money for retirement
Some people stop saving because they believe they will never have enough money saved and it’s pointless to continue because they’re so far behind where they should be.  However, other people stop saving because they think they have enough – or even more than enough – and they no longer need to keep setting that money aside.  Keep up with your saving plan and IRA contributions as long as you are eligible.

Mistake #2: You don’t explore refinancing your house
For some people, their mortgage is a thing of the past and they have no plans to move.  For others, a current mortgage will continue to be a part of their financial life.  Whether you’re still paying on your mortgage or you’re planning to sell and move to that place you’ve been dreaming of all these years, refinancing is an option to strongly consider.  Refinancing can involve a seeking a lower interest rate and a term you can afford or taking on a new mortgage for more than you owed to do such things as pay off debts or taking the difference in cash for other uses. 

Mistake #3: You assume your health will stay the same
Even if you or a loved one are living with a chronic health condition or have experienced significant health issues in the past, planning your retirement budget around your health staying the same could leave you in a difficult place if a new concern comes up.  Plan for a possible change to your health care needs which includes long or short term care, accidents or injuries, or the development of new health conditions.