There are a number of factors beyond your control that can potentially put your financial security at risk when you retire. Inflation is at the top of the list considering the recent spike to more than 8% in 2022. Another concern beyond your control is an increase in income tax rates or changes to Social Security.
Add to this there may be a number of unexpected expenses up ahead and the only thing you can do is make sure you’ve saved enough to cover it all. However, you may be surprised to learn that some of the biggest threats to your retirement are within your control.
Giving Cash Gifts To Adult Children
One of the top reasons you’ve worked so hard to save for retirement is that you want to be financially independent in your golden years. Yet, surveys show far too many retirees compromise their own security by tapping into their nest egg to give cash gifts to their adult kids.
In fact, the issue can rear its head even sooner. Surveys show that as many as half of pre-retirees save less for retirement because they’re helping their adult kids with their monthly expenses. This is a financial factor you can control and it starts with having a conversation with your kids about money.
Paying For An Oversized House In Retirement
Becoming emotionally attached to your home is understandable. It’s the place where you raised your family and the foundation of your fondest memories. However, if the house is far larger than you need, it’s time to consider what it’s costing you in utilities, maintenance and property taxes.
If your home has a good amount of equity, and the current real estate market favors sellers, selling can help fund your retirement. Then you can use a portion of the proceeds to buy a smaller home or condo.
Paying For An Oversized House In Retirement
Becoming emotionally attached to your home is understandable. It’s the place where you raised your family and the foundation of your fondest memories. However, if the house is far larger than you need, it’s time to consider what it’s costing you in utilities, maintenance and property taxes.
If your home has a good amount of equity, and the current real estate market favors sellers, selling can help fund your retirement. Then you can use a portion of the proceeds to buy a smaller home or condo.
Paying For An Oversized House In Retirement
Becoming emotionally attached to your home is understandable. It’s the place where you raised your family and the foundation of your fondest memories. However, if the house is far larger than you need, it’s time to consider what it’s costing you in utilities, maintenance and property taxes.
If your home has a good amount of equity, and the current real estate market favors sellers, selling can help fund your retirement. Then you can use a portion of the proceeds to buy a smaller home or condo.
Assuming You’ll Spend Less In Retirement
When it comes to retirement planning tips, you’ve likely heard you’ll need 80% of your pre-retirement income to maintain your lifestyle in retirement. Then again, surveys show many retirees spend more than they estimated in the first couple of years after their retirement party.
That new sense of freedom from the workday grind has many retirees feeling like every day is the weekend. This can lead to spending far too much on travel, dining out and recreational shopping because you have nothing else to do. Add in that expensive sports car you’ve always wanted and you may find yourself spending 100% or more of your pre-retirement income.
