5 Retirement Pitfalls
One of the stereotypes about the baby boomer generation is that most are in denial about getting older. As a result, many are ill-prepared for retirement. Some of you readers have heard me say this before but as has been shown in several studies, the boomer generation (and to be completely fair, most people) spends more time planning for a one or two-week vacation than for a 10, 20 or 25-year retirement, never mind developing an actual retirement plan to follow.
Stanford University’s Center for Longevity published conference proceedings titled “Retirement in the Age of Longevity” which identifies and discusses five pitfalls affecting the boomer generation.
1. Pitfall 1: Failing to Plan
2. Pitfall 2: Underestimating Expenses
3. Pitfall 3: Underestimating Years in Retirement
4. Pitfall 4: Retiring too Early
5. Pitfall 5: Failing to Save Enough
There is a clear lesson here for everyone, but especially for those approaching a retirement decision or those who are relatively early into their retirement. For many of you, there is probably still time to make necessary adjustments.
So based on the five identified pitfalls in the Stanford study, here are my counterpoints:
1. Develop a retirement plan
2. Overestimate expenses
3. Plan for greater longevity
4. Defer retirement as long as feasible
5. Save, save, save or work part time