Yahoo Finance 6 Reasons Retirees Regret Not Seeking Financial Advice Prior to Retirement
If you’ve finally made it to retirement, congratulations. Hopefully, you’ve saved and invested enough money to live comfortably without worrying about your finances.
Check Out: Trump Wants To Eliminate Income Taxes — How Would That Impact You If You Are Retired?
Read Next: The Surprising Way You Can Get Guaranteed Retirement Income for Life
However, some retirees have several regrets about not seeking financial advice before retirement.
According to a 2024 report by MedicareFAQ based on 560 retiree respondents, 1-in-4 retired Americans say they have regrets now that they’ve retired. A full 54% of respondents said they didn’t save enough for retirement, 84% said they wished they saved more, and 60% admitted to not investing in retirement funds early enough.
Here’s how you can learn from these retirees and avoid having the same regrets.
Learn More: How Long $1 Million in Retirement Will Last in Every State
Retirement Planning: Whether you're planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor -- even if you're not wealthy.
6 Ways To Avoid Post-Retirement Regrets
Here are six ways to avoid financial regrets during retirement, according to AARP:
Be sure to save enough money: As a general rule, you’ll need roughly 80% of your working income in retirement to maintain your lifestyle. Neglecting to save early and often throughout your career could mean that you miss out on years of compounding which could mean that you may not have enough funds once you call it quits at your 9-to-5. Be sure to park your cash in a high-yield savings account. This way, your money will benefit from compound interest over time and grow exponentially.
Don’t ignore the cost of long-term care: Adult day care currently runs an average of $24,700 a year. If you want a private room in a nursing home, be prepared for an even higher price. The cost averages $116,800 annually. You’ll need to consider the hefty cost of long-term care needs before you enter retirement.
Don’t avoid the stock market: Historically, investing in the stock market is one of the most reliable ways to grow your money over time. Neglecting to invest, early, often, and consistently could jeopardize your chances of having a comfortable retirement. The earlier you start, the more time your money will have to compound.
Don’t take bad advice: Everyone has an opinion. You might hear financial advice from your next-door neighbor, your hairdresser, or your brother-in-law. However, unless the people offering the advice are financial professionals, you should take it with a grain of salt. Always do your research and consider consulting a financial advisor to guide your money decisions.
Don’t claim Social Security benefits too early: You’re eligible to claim Social Security benefits as early as age 62. If you choose to claim benefits as early as possible, you’ll only be eligible for 70% of your full benefit. Each month after you turn 62 that you delay claiming benefits, you’ll be eligible for a higher monthly benefit for life. By waiting until age 67, you’ll be eligible for 100% of your monthly benefit. Meanwhile, by waiting until the maximum age of 70, your monthly benefit will be 24% higher than if you start collecting at age 67. Consider waiting longer to claim benefits if you can afford it.
Don’t spoil your family too much: If you can swing it, it’s nice to give your kids and grandkids gifts, take them on vacations, or provide financial support to them if needed. However, spending money on your family should not come at the expense of a comfortable retirement. Carefully evaluate your finances before doling out funds to your relatives.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Reasons Retirees Regret Not Seeking Financial Advice Prior to Retirement
