If you’re getting ready for retirement and you haven’t planned for it yet, you may be in for a rude awakening. The only good news is you may not be alone. In a recent USA Today article, Matthew Shafer, economist and author of The Future of Your Wealth shared some common mistakes made by couples preparing for the next stage of life.
First, Shafer says not too feel bad because retirement is very complicated. But here are his seven big mistakes.
- The couple never talked about what they expected retirement to be. Besides the financial changes, retirement likely means spending a lot more time together.
- Couples in second and third marriages didn't think to plan for their potentially unique problems. Blended families can create significant issues.
- They didn't do proper financial planning. Very few retirees have a financial plan, so they don’t really know what they have and what to expect.
- They haven't planned for emergencies. Things may look fine at the start but an emergency can be devastating.
- The couple didn't consider the costs of health care or long-term care. Few people have long-term-care insurance but there is a strong likelihood they will need it.
- Only one partner is handling financial matters. This is all too common and an obvious and very big mistake.
- Do not assume that just because you're married you can automatically act for each other in business and health care decision-making. You need to make sure that the proper legal documents are completed.
Go through this list carefully to see if you’re ready for retirement. Most problems occur simply because you didn’t plan.