It's OK to Get This Retirement Decision Wrong -- Just Don't Get It Too Wrong
Key Points
No one knows how much retirement will cost them.
You don't need to know your exact total expenses to save enough for retirement.
Schedule regular check-ins to make sure you're still on track for your goals.
- The $23,760 Social Security bonus most retirees completely overlook ›
Part of why preparing for retirement is so stressful is because it feels like there are so many ways to get it wrong. You might claim Social Security too early and have to settle for smaller benefits than you'd expected. Or you might accidentally exceed your retirement account's contribution limits, incurring a tax penalty.
But there's one even more common mistake that pretty much everyone makes, and it's really difficult to avoid. That doesn't mean you can't enjoy a comfortable retirement, though.
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Uncertainty is a natural part of retirement planning
One of the hardest truths savers face is that there's no getting around the uncertainty of the retirement planning process. It naturally involves many unknowns, which makes it difficult to figure out exactly how much you need to save for retirement.
No one can guess precisely how much their retirement will cost, and that's OK. You don't need to in order to retire comfortably. You just need an educated guess and regular check-ins that can help you catch flaws in your plans before they derail everything.
While it's true that many people spend less in retirement than they did when they were working, it's important not to expect your expenses to change drastically. Be realistic about how much you think you'll spend annually in retirement, and use this to guide your decision about how much you'll need to save.
Aim to make regular retirement contributions if you're able to do so, and don't forget to increase your retirement account deferrals whenever you get a raise. This, coupled with at least annual check-ins, will give you a good chance at retiring comfortably.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
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