Q. Robert, I plan on retiring next year. I have a decent pension and some money in savings, but I worry that I might be forgetting something. Are there any other factors that I need to be concerned about?
A. Nancy, it sounds like you have put a lot of thought into your retirement plan, which is great. However, here are some common mistakes that people make in retirement:
Not having a retirement income strategy:
It is hard to reach your destination when you don’t know what it is. Maybe you have never mapped out how you will financially support yourself in retirement, or maybe your current plan has been gathering dust for years. Now is the time to correct this mistake and set a clear course for your retirement income.
Not saving enough:
Spending each paycheck to the dime without saving for your future can put you in a rough spot once your checks stop coming in. Make sure you have a budget that includes putting money away for retirement — and stick to it.
Overlooking the impact of inflation and taxes:
You can’t always predict what the changes will be to the inflation rate or taxes, but that doesn’t mean you can’t prepare for the fact that there will be changes. Make sure you develop your retirement income plan based not just on what you will need for today, but what you will need in the future