These 5 Mistakes Could Ruin Your Retirement


Nobody is completely sure what they are going to need when they retire, but many seniors believe that they have a pretty good plan for themselves, financially and personally. However, the truth is that over 50% of adults over the age of 50 do not even have a quarter of the amount of money they are going to need for retirement. People are living longer these days so you need more than what you think and even if you have worked from the day you were 16, your social security money may not be enough to pay your bills, let alone feed you and pay for any other expenses. That is why so many seniors end up going back to work after they retire; they just cannot live on what they get from their social security. There are five major things that seniors tend to do that can make their retirement days unpleasant.


Loaning Money to Family


For some reason, children and grandchildren think that because you were able to retire that you should have plenty of extra money so they can hit you up for a loan if they need to. Be careful with this situation. For one thing, there is no such thing as a loan with family; they probably will not be paying you back. And because you love them, you do not want to ask them to even if they said they would and they haven’t. Once you loan money to one family member, the others will expect you to do it for them too. If you have eight children and 20 grandchildren, this can wipe out your savings in one year. Just say no. 


Co-signing on Loans


Another mistake you may be susceptible is co-signing for your children or grandchildren for a car or house or whatever they “need” at the moment. They figure that since you are old and have your own home and car that you do not need to worry about credit. Big mistake. There is always the chance that your car may break down, something could happen to your home, or there is an emergency and you may need to get a loan. Besides, just because you are old, it does not mean you do not need good credit! You are old, not dead!


Retiring Too Early


As of 2017, the retirement age to get full benefits is 66. Many people retire early, but they do not get their full amount of pay that they would get if they waited. For example, if you retire at age 62, your amount is decreased by 25%; if you wait until you are 63, they reduce it by 20%; they keep 13.3% if you retire at 64; and if you wait until age 65, you will get 6.7% less than you would if you wait. It is not a punishment and they are not stealing your money if you retire early. They simply have to stretch that amount over a longer period so they have to lower the amount so you do not suddenly run out of money when you are 90 or 100 years old. Can you imagine having to go out and look for a job at 100 years old?


Raiding Your Retirement Fund


Taking money out of your retirement fund is always a bad idea, especially before you retire. If you do so, you are throwing away lots of money in fees, taxes, and penalties. Not to mention the fact that you forfeit the future gains on the amount you withdrew. That can add up to thousands of dollars, which can mean the difference between paying your mortgage or your electric bill. Of course, borrowing from your retirement plan is a tempting option when you need money suddenly, but if you have other options or if the need is not really necessary, do not do it. 


Too Much Debt


Retiring with too much debt is a common mistake which can make your retirement more like a nightmare than a vacation. Retirement is supposed to be the benefit you get for working hard your whole life. There are options. Credit card consolidation or simply paying off your credit cards before retirement is the best idea.

The stress and depression that it causes when you cannot pay your bills can be debilitating. If you are having trouble with these issues and want someone to talk to, you can talk to a caring professional online without even having to make an appointment. They can help you with your anxiety and even suggest someone in your area you can talk to so you can enjoy your retirement like you should. 

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