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Allworth Advice: Running out of money in retirement
Amy Wagner with Allworth Financial discusses running out of money during retirement.
Allworth Financial, Cincinnati Enquirer
Planning for retirement typically starts when we get our first job. Our employer often contributes, and we set aside money from our paychecks toward this end.
A leisurely retirement is the ultimate goal of our working years. However, without realizing it, we may end up facing a retirement of hardship, insufficient funds, and worry. There are many retirement mistakes that people often make.
Here are a few that need to be avoided.
Retiring too soon
We often inaccurately assume that our current lifestyle can be maintained at its present level and dollar amount. As we look at the money we have saved, which seems to be enough to maintain our present lifestyle, we may have a false reliance that the future will look exactly the same as it is now. As we have recently seen, inflation can change the economy with the rising cost of gas and increasing prices on food and necessities.
If we retire too early, we may not have saved enough to overcome these situations in the future. There are no guarantees that our current spending will be the same as our future spending.
In addition, we falsely assume the length of our particular lifespan. For many of us, we have an assumed age to which we will live, usually between 75 and 80. However, as seen by some very famous people (former President Jimmy Carter who is still alive at 98, actor Kirk Douglas who lived to be 104, actress Betty White who lived to be 99) we may live much longer than we think. Having enough in retirement savings is essential to being able to enjoy retirement no matter how long we live.
Retiring too late
Even if you absolutely love your job, there will be a time when you will want to kick back and relax. It is important to make sure that your reason for working is love of the job and not a fear of retirement.
Time spent with family, …….