This is one egg you don’t want to crack.

We love eggs. We go through about 18 eggs per week. If cooked properly, your hard boiled eggs will crack and peel easily. This is the type of egg you want to crack – not the retirement nest-egg. Here are a few things people fall short of when planning for retirement that can lead to a scrambled mess.

I like to use age 90 for life expectancy in my planning. Often, a client will state that there is no way they will live that long. Underestimating your life expectancy will wreak havoc on your plans. Most people retiring at age 65 will live 20 years or more beyond that age. I prefer to err on the side of longevity.

Most of us save to some type of retirement plan – many only save to the corporate match. Not knowing what to save can be another crack in the retirement nest egg. Fortunately, doing a budget can solve this problem. Knowing how much income is necessary to replace your earnings + emergencies is essential to a secure retirement.

While at a friend’s house, another guest stated that they want to retire at age 62 and start taking Social Security. I quickly explained that he would be taking a permanent 25% cut in those benefits during his lifetime, and relegating his wife to a reduced benefit when he passes. Waiting until full retirement age, or beyond, can be a great boost to your retirement income. In fact, delaying taking your benefit past age 65 until age 70 allows for an automatic 8% per year increase in your social security payment.

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