Some of the costliest errors people make that negatively affect their retirement plans are the ones they make themselves. Here are four of the most common – and avoidable – mistakes from Time.com
1. Not enough savings
Saving over the course of your career is absolutely the easiest way to increase your nest egg (the sum of money you save for retirement purposes). The more you save at an earlier age will result in a much more valuable nest egg. Nearly half of the people questioned in TIAA-Cref’s Ready to Retire survey said they wished they had saved more money for retirement. Many experts suggest aiming to save 15% of your annual income.
2. Not saving early enough
Even if you do save 15% each year, you could end up with a much larger nest egg if you start earlier. The earlier in your life and career that you begin saving as much as you can afford to, the more your retired-self will thank you.
3. Overpaying for investments
Try to spend less on investments. Like fried foods and ice cream, they’re perfectly fine in moderation, but spending too much on them can significantly reduce the money you could be saving for retirement.
4. Opting for Social Security without strategy
The optimal time to claim Social Security benefits is different for everyone. For some people, it is reasonable to opt for Social Security as soon as they can – but for many, it would be wise to wait. For each year that you postpone your claim to Social Security between ages 62-70, your payment could rise 7-8% and you could end up with a lot more money. To ensure you’re getting the most out of your Social Security, consult an expert on when you should begin opting for benefits.
Not enough savings
Not enough savings
Not enough savings