Mistake #4: Not planning for healthcare costs
Many people assume that they will spend less money in retirement, but retirement expenses include a vast array of aspects you’ll need to cover, from housing to utilities and daily necessities.
As a matter of fact, 33% of households increase their spending during their first 6 years of retirement. Surprising or not, it pretty much boils down to healthcare costs that many people disregard, especially if they don’t suffer from any current health issues. Worst mistake ever!
“The best medicine is to make sure your retirement plan takes into account this large line item — and to find ways to cut future costs or develop income streams to pay expenses,” as stated in Kiplinger’s Retirement Report.