Once a young adult starts working, he or she often hear the advice that they should start “planning ahead.” How far ahead, though? The truth is, this planning should be done well into retirement. However, being young and carefree can make it hard for a person to see that far into the future. It’s quite common for young people to put off retirement planning until a later date, only to find out that they haven’t prepared as well as they thought they had – or, that they hadn’t prepared at all.
Mistakes to Avoid
The bright side is it’s not too late to plan for your retirement. Financial advisors from Utah Senior Planning understand the needs of retirees and would-be retirees. Young or old, you need to find a financial advisor you can trust. They’ll tell you everything you need to know about planning for your retirement as well as mistakes you need to avoid such as:
Not Having a Retirement Plan at All
This should be self-explanatory. Remember that you won’t be working forever. Where are you supposed to get money once you’ve stopped working?
Underestimating Health Care Costs
When individuals first retire, they are still mostly healthy. In turn, they use their retirement savings to live the life they’ve always dreamed of and they spend much on certain things such as vacations and trips. As time goes by, though, health problems often occur. As such, it’s best to be generous about health care costs when factoring in how much you need to save to this end.
Not Knowing How Much is Needed to Retire
For young individuals, it can be impossible to tell how much they’ll need to retire comfortably. What they can do is keep a separate savings account in which they can store the money that they deduct from their salary.
Meanwhile, for those nearing retirement, they need to review their current salary and check their expenses. They should run this by a financial planner to know how much they’ll need for a comfortable retirement.
It’s never too early to plan for your retirement. We don’t stop living after we’ve stopped working. It’s not something that easily comes to mind but it’s the best way for us to continually care for ourselves well after we’ve stopped getting a paycheck.