You have finally reached your finish line – congratulations! While retirement means different things to different people, there are a few points that can mess up everyone’s retirement. Please don’t make these mistakes:

Underestimate your medical costs.
We are living longer – this may be good – maybe it isn’t. Medical care is an expense that you need to overestimate. The average 65 yr. old couple can spend up to $260,000 in health care costs over their lifetime, many exceeding $570,000 when you factor in long term care needs.

Claiming Social Security too soon.
If you retire at age 62 and claim your social security at that time, you will take a permanent 25% cut in benefits. As mentioned above, we are living longer. If you can wait until your full retirement age or longer, you will be much better off. For each year beyond full retirement age that you defer your social security payment, you will receive an 8% increase in monthly income. You can defer up to age 70, increasing your social security by as much as 32% for most recipients.

Only thinking about your numbers.
You’ve looked at your social security and pension options, paid off your home, made peace with your taxes, now what? Economically, your retirement is set. What are you going to do with your time? You need to have a reason to get up every day – planning for this is just as important as planning the numbers. Will you work part time? Volunteer? Take classes? Babysit your grandkids? You need to plan your retirement lifestyle now, before you retire.

disclosures:http://www.hechteffect.net/?page_id=31