4 Looming Problems to Avoid when Planning a Successful Retirement
Retirement is a dream for many workers, but without the right planning it can turn into a nightmare. If you are thinking about an early exit from the workplace, you need to think things through carefully. You only get one chance at a secure retirement, and you cannot afford to make a life changing mistake.
Retirement is a highly sought after goal for many workers, but leaving behind the security of a full-time career for the uncertainty of a post-work life is not something to rush into. Even if you think you are ready to retire, it pays to do your homework and think very carefully.
If you are not careful, your dreams of a financially secure retirement could be short lived, and you could end up looking for a new job. Knowing what to watch out for before you put in your notice and pick up your gold watch could make all the difference in the world, so you can retire happily and stay retired. Here are four pressing problems that could crimp your retirement lifestyle.
You Have Trouble Making Ends Meet
If you are earning a good living and still having trouble making ends meet, things will not get any easier once you retire. Unless you are counting on a huge inheritance or holding a winning lottery ticket, you need to seriously rethink your retirement plans.
There are some things you can do to ease the burden, like setting up a strict budget and trimming monthly expenses, but you will need to test drive your finances long before your last day at work. Sticking to a budget will become much more important once the regular paychecks stop, and you cannot afford to make a costly mistake.
You Still Have Unpaid Debts
Having high levels of debt could sink your dreams of a happy retirement before they even get started. If you are still paying off your debts, you may want to rethink your retirement plans and redouble your efforts to put those old bills to rest.
Even having a mortgage can be a real struggle for retirees, but other debts will simply add to the burden. So do yourself a favor and aim for a debt-free retirement – you will breathe a lot easier in the end.
You Are Still Financially Supporting Your Grown Children
Raising kids is an expensive proposition, but the costs do not always end when those little ones grow up and leave the nest. If you are still paying expenses for your adult children, the extra cost could put a serious crimp in your post-work lifestyle.
There is nothing wrong with helping out your grown children in a financial emergency, lending them a few hundred dollars to make ends meet. But if you are routinely paying for cell phones, rent, cable and other expenses they should be bearing on their own, it is time to cut the cord. If you fail to do so, you could see your dreams of a financially secure retirement go up in smoke.
You Have Not Game Planned Your Post-Retirement Expenses
It is tempting to assume that your living expenses will go down once you retire, but thinking and knowing are two very different things. If you make a miscalculation here, you could end up pinching pennies in retirement – or heading back to the workforce after a few short years.
If you have not game planned your post-retirement expenses, it is time to get going. Setting up a realistic post-work budget is just the first step – if you want your retirement to be financially stable, you need to take it for a test drive.
Once you think you know how much you will be spending in retirement, set that amount aside and try to live on it. If you are successful, you will feel better about your retirement plans. If not, you may want to work a bit longer and boost your nest egg.
Retirement is a dream for many workers, but without the right planning it can turn into a nightmare. If you are thinking about an early exit from the workplace, you need to think things through carefully. You only get one chance at a secure retirement, and you cannot afford to make a life changing mistake.
