Top 10 Mistakes People Make When Planning for Retirement

[Midpack]

https://www.barrons.com/articles/retirement-planning-mistakes-51671121778?mod=Searchresults

1. Underestimating the impact of inflation (cited by 49% of advisors).
2. Underestimating how long you will live (46%).
3. Overestimating investment income (42%).
4. Being too conservative in investments (41%).
5. Setting unrealistic return expectations (40%).
6. Forgetting to factor in healthcare costs (39%).
7. Failing to understand income sources (35%).
8. Relying too much on public benefits (33%).
9. Underestimating real estate costs (23%).
10. Being too aggressive in investments (21%).

 

[Car-Guy]

We're all learning about number one over the past year. And if you significantly overestimate number two, the rest probably won't matter much.

 

[bobandsherry]

We're all learning about number one over the past year. And if you significantly overestimate number two, the rest probably won't matter much.

More than 1 year in your retirement. So using the past year as the base line is over aggressive for sure. I retired 7 years ago, over that period inflation well below my estimate. Inflation could remain the same this year and I've still underestimated. Short term inflation will ebb and flow, long term it all normalizes. Historically it's under 3%, I estimated slightly higher so I hopefully didn't make that mistake. [emoji39]

Found this.... "10-Year Breakeven Inflation Rate was*2.30% in December of 2022, according to the United States Federal Reserve. Historically, United States - 10-Year Breakeven Inflation Rate reached a record high of 3.02 in April of 2022 and a record low of 0.04 in November of 2008."

https://tradingeconomics.com/united-states/10-year-breakeven-inflation-rate-fed-data.html

 

[athena53]

#8 (Relying too much on public benefits) is what concerns me because I think it will get worse as the population ages. Wait lists for subsidized senior housing are already years long in some places and people relying on Medicaid for LTC don't have a lot of desirable choices if they can't self-pay for a couple of years. Relying only on what the government gives you is no picnic.

 

[SnowballCamper]

So, ummm, "Not saving enough" wasn't in the top 10? Seems kinda obvious...