Studies show that a massive amount of baby boomers are retiring this year, and that many of them are completely underprepared for retirement. If you’re a baby boomer, you can avoid the same pitfall facing millions in your generation.
Here some mistakes boomers can make before retirement, and how you can avoid them:
Underestimating life expectancy in retirement
Our life expectancies are rapidly advancing thanks to healthcare and technology. So one of the biggest mistakes boomers can make before retirement is underestimating how long they’ll retire for. Many mistakenly
The average life expectancy is around 85 years old, and many don’t plan financially for that longevity. To make matters worse (at least, financially) according to the Social Security Administration, about one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. That’s why your best option is not to plan for retirement based on a ballpark estimate, but to plan conservatively based on your circumstances.
Focusing on short-term gains to catch up
Many baby boomers realize they have a retirement gap that needs to be closed quickly. While it’s a smart move to plan ahead and face reality, another one of the big mistakes boomers can make before retirement is to make risky moves to close the gap. Some will try to time the market or make concentrated investments (or bets) in order to chase higher returns. Often, this ironically results in bigger losses, and a need to play more catch up (see our blog on retirement tips for late bloomers for more).
Learn more about avoiding the investing mistakes boomers can make before retirement
At LexION Capital, we help clients create a worry-free retirement by crafting a unique, goals-based plan with their needs in mind. If you’d like to see how you can avoid retirement planning mistakes, don’t hesitate to reach out to one of our fiduciary advisors today.
