1. Not considering an adequate life expectancy: Many people plan around the average life expectancy (79 for women, 77 for men), which can be a ticking time bomb. Underestimating your life expectancy leads to the next common error.
2. Claiming Social Security early: Many people want to collect Social Security Benefits as early as possible without fully realizing the implications. Delaying to full retirement age can provide an inflation-adjusted income into your golden years. Social Security claiming should be a joint decision and should favor the spouse with a longer life expectancy.
3. Selecting a lump sum instead of a life payout: If you are fortunate enough to have a corporate pension plan, beware of rosy projections and assurances that your savings would perform better outside the plan. Depending on the plan’s health and payout options, it often makes sense to receive the lifetime income offered.
Schedule a consultation to discuss your unique situation.