Tax filing season is upon us (as of this publishing date), and we may not be focused on our long-term goals until our filing is completed. But, once tax season is behind you, ignore these retirement financial pitfalls during the coming year at your peril.
As this video from MarketWatch points out, the retirement landscape is changing. For many of us empty nesters, we may be working deeper into our 60’s than our parents did.
Your 60’s are the New 50’s
With longer lifespans, retirement is now measured in decades rather than years. This creates several challenges – how to stay challenged during long retirement periods, and how to pay for that longer retirement.
Many people are choosing to work longer. And with healthier adults, there is no reason to stop working at the defined retirement age… especially if you enjoy what you do. Even transitioning from a full-time career to a new part-time project will continue to challenge you and delay your reliance on social security and your savings.
Every year that you delay retirement also increases your final social security payment by 8% (up to the age of 70).
Planning for the Unplanned Retirement Financial Pitfalls
Much of your retirement savings will be used for healthcare as we retire and age. It is important to create your own personal healthcare fund for those retirement years.
In addition, property costs and debt do not disappear once you stop working. “In fact, more people are making a monthly home mortgage payment well into their retirement than has ever been the case”, states Tax & Estates lawyer, Jeffrey Cohen.
So, once you finish the tax filings for last year, turn your attention to your future. Begin to realistically consider how you might address some of these retirement financial pitfalls while you still have to address them.