Financial Habits to Avoid in Retirement
We see a few bad financial habits from retirees in the financial planning process. The top ones you should avoid are taking social security too early, living in retirement with a saving mentality, or spending too much during retirement.
Most people who take social security before full retirement age do it because they listen to friends or trust news articles about taking social security early for various reasons. For most people, it’s better to wait until age 70 to maximize your Social Security benefits. However, this is advice to the general population and not individual advice. So, always check with your financial advisor to understand what is the best option for you.
The second habit we see often is people having a saving mentality in retirement. We try to help our clients understand that while it’s important to stay within the plan, retirement is what they saved for. Instead, we find a lot of people still trying to build up their savings after they have retired.
The opposite is also true, as we also see people in retirement that may be spending too much. If you’re spending too much, it probably means you didn’t prepare for retirement properly. Maybe you underestimated your expenses before you made the leap, or something has happened in your life that’s causing you to feel obligated to spend more.
In any of these situations, a financial advisor can help guide you through necessary adjustments so you can make the most out of your retirement.
Have more questions? Contact Us
Casey Smith
President, Wiser Wealth Management
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