Four Retirement Planning Mistakes You Need To Avoid If You're Single
Posted on: 26 November 2017
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Successfully planning for financial comfort during one's retirement can be especially challenging for single people.
If you're single and you live entirely independently, you're going to face some unique challenges when it comes to retiring. You're only going to have one income to rely on while you're working. Once you retire, you'll have to make do with only the retirement provisions your career offered.
Nevertheless, you can enjoy a comfortable retirement as a single person by avoiding the following four mistakes:
Starting to save up for retirement too late
Beginning to save for retirement early is especially important if you're unmarried and intend to remain single until and during retirement. You're only saving up on one income, so how much you can save over a period of time might not be as much as a couple could save together over the same period of time.
Also, you may be dealing with a smaller budget if you're single. You'll be paying your rent or mortgage alone. You may have a relatively small amount left over to put into savings every month. Therefore, starting to save early is a good idea.
Failing to put thought into what you want during your retirement
People should plan their retirement savings with the thought of what type of lifestyle they want to have during retirement in mind.
If you're single, you're going to be entirely reliant on yourself to stay occupied and content during retirement. You can better ascertain how much money you'll need to stay comfortable during retirement if you know what you'll be wanting to do.
Put some thought into where you'll want to live, what you'll want to do for entertainment, and what kind of expenses you're going to have to live with as a retired person. Then, plan your retirement savings based on how much you'll need to satisfy those wants and expenses.
Being unaware of the options that are available to you
A lot of single people don't know that certain funds are available to them. For example, some widows or widowers don't realize that they can collect social security for a deceased spouse at a certain age.
Putting all your eggs in one basket
Having diversified investments is especially important for individuals who are planning to retire single.
With a spouse or partner, you'd automatically have two sets of investments and/or retirement plans to rely on. When you're single, you're relying entirely on your own investments.
You should have more than just a 401(k) to support you during retirement. You should also consider other options like investing in real estate or an IRA to offer you greater stability and protection against market volatility.
Contact a business like Estate & Financial Strategies, Inc. to learn more.