What Are The 5 Biggest Retirement Planning Mistakes?
Well, the biggest blunder is not saving enough money. No one wants to outlive their nest egg.
The rest of the list is more subtle. According to Certified Financial Planner Darren Zaragola, common mistakes include:
Mistake #1: Believing it is Too Late to Start Planning and Saving
It is never too late to develop good habits and start saving for retirement. You do not have to “go without” to save. Every little bit helps, especially if you can take advantage of compounding interest. Start with a written plan that includes realistic savings goals and a budget to help you understand where you are spending.
Mistake #2: Not Taking Advantage of Retirement Plan Provisions (e.g., Catch-up Provisions or Company Matching)
Now that your income is higher and your kids may be out of college, this might be the first time in years that you have excess disposable income. Also, at age 50 (or older), you become eligible to take advantage of “catch-up contributions.” This means the maximum amount you can contribute to your employer-sponsored retirement account is $26,000, or $6,500 more than you could at age 49.
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