Most people say that you regret the things you didn’t do more than things you did. Such regrets are common when it comes to retirement planning.
More than 76% of retirees have at least one one regret when it came to planning for their retirement.
You may have a lot more than one regret you learn about after you retire. Here are four retirement regrets to learn from now.
Many retirees regret not saving enough money to hit their retirement number, the specific amount of money you will need to live the post-working lifestyle you want.
The average human being lives to be 80 years old. And the average person retires by age 63. So, your retirement savings should last you for close to 20 years. Otherwise, you run the risk of outliving your own retirement, borrowing money, or working again while in your 80s or 90s.
Save money every day and try to invest wisely before you retire. That way, you may have more income to rely in retirement.
Putting off saving
You are setting yourself up for failure if you start saving for retirement only a few years before you retire. Start saving for retirement as early as possible.
Saving $1 per day or $5 per week is better than saving nothing at all. You can also take advantage of money-saving apps that help you save money more efficiently.
Keeping large debts in retirement
In 2019, more than 12% of Americans declaring bankruptcy were age 65 and over. For every 51 million senior citizens, over 133,000 filed for bankruptcy that same year.
Pay down all your debts before retiring or, at least, before you become elderly. Don’t pay bills or tuition for kids or relatives if doing so jeopardizes your own retirement future. Keep a strict budget. Develop a debt payment plan.
You might end up in retirement only to use your retirement fund to pay off your lifelong debts.
Not considering better living options
More than 40% of retirees survive on their Social Security benefits alone. The average Social Security payment is $1,500 monthly or about $18,000 annually.
The hard truth about getting older is that you may not be able to live the lifestyle that you want as you age, at last in the United States. Consider the possibility of retiring abroad to optimize your savings.
Ten years of retirement savings in the United States could last two or three decades abroad. In fact, more than 431,000 Americans now receive their Social Security benefits while living outside the country, and 12% of Americans have at least considered retiring abroad once.
Consider which countries you could retire to and research the benefits and drawbacks.