How much money is sufficient enough for retirement? Here are 5 of the fastest ways to go broke in retirement and how to avoid them.
1. Forgetting to Budget
The number one rule for planning to retire is to create a personal budget. Factor in bills, healthcare, transportation, living expenses, and emergency savings. Set yourself up for success in retirement by sticking to your budget.
2. Giving Money to Grown Children
Supporting adult kids could be cutting into your retirement savings. According to a recent study, 68% of parents who are 55 or older are providing financial support to their adult children. If you’re still giving money to your adult children, it may be time to stop, especially if you are planning to retire sooner than later.
3. Not Working Part Time
Just because you retire doesn’t mean you have to stop working. Many people continue to work after retirement. Having a part-time job or picking up freelance work is a great way to make ends meet during retirement. Plus, it will help you stay active and healthy during your golden years.
4. No Plans for Health Coverage
Don’t make the mistake of losing health coverage when you retire. Medical bills are ridiculously expensive and you simply can’t afford to be uninsured in retirement. Get health coverage and avoid going broke in retirement.
5. Retiring with Debt
How much debt it too much debt? Don’t let lingering debt keep you from retiring. Focus on paying off your debt before retirement and you’ll be able to enjoy financial stability again.
For more tips on how to make money and avoid going broke in retirement, click here.