Retirement planning is no easy feat. This is why many people shy away from it. This though doesn’t mean that it is one of the most crucial aspects that individuals should consider while they are still working. Even the people who do plan for retirement make costly mistakes and forget critical factors that can ultimately impact their retirement plans mostly in a negative manner. Bill Schantz reveals that there are four major pitfalls that retirement planners need to avoid.
1. Being Unaware of Post Retirement Expenses
Most of the American population has no savings or plans for their retirement. This means that they don’t prepare adequately for it so they don’t have an idea of the expenses that they will have to incur after retirement. Even working people know very little about their current expenses and don’t plan those, Bill Schantz notes. Naturally then, they remain unaware of the costs they might have to pay for after retirement.
Which are the expenses that will be eliminated after a person retires and what are new costs that will be added to the list? These are the two most fundamental questions that people forget to consider in their retirement planning.
2. Assessing Current and Future Income is Crucial According to Bill Schantz
After expenses, the next most important thing is knowing how they will be covered. Retirees can have different avenues like pensions or Social Security payments. However, how much this payout will be and if it will be enough to cover their post retirement expenses is vital as per Bill Schantz. If these payments are able to cover expenses, great, but if they don’t, individuals have to consider other revenue streams so that they can live a comfortable life after retirement.
3. The Replacement of Time is Another Vital Element
Retirement age at almost every organization or institution is above 60. When a person finally retires after having worked for a significant part of their life, they find themselves with too much time on their hands. Where office occupied most of the daily routine, most of the day goes free after retirement. Failing to account for this time and how to fill it can stress out anyone. Not having anything to do often leads to mental ailments which is eventually harmful to physical health as well.
4. Bill Schantz’s Final Point is to Consider What People are Leaving Behind Besides Money
Retirement is not just the end of work life but the start of a new chapter in life as well. People need to consider the legacy that they wish to leave behind. It is not just about financial inheritance but emotional elements as well. Family, relationships, morals and ethics that a person instills in the next of kin and the generations to follow are worth the same, or even more, than monetary benefits.
Bill Schantz asserts that retiring is not easy, but it is inevitable. People need to not only consider what and how they will manage their expenses after they stop working, but they also have to take into account time management and legacy. These things need to be sorted properly before it is too late.