The 7 mistakes retirees are making with their money

Posted May 28th, 2018 by Sergio Lynch

Retirement is an important event to person’s life. That is why before you retire, you really need to ensure that all things are in the right places; and you have to make the perfect decisions. Otherwise, you might be killed by debt and have a terrible retirement experience.

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Those who are considering retiring from their specific careers within the next five years or so are now in the retirement zone. This is a critical time period. Why? That is because in this period, you’ll be faced with a number of important choices, and the decisions you make can have long-lasting consequences.

The retirement zone is a period of transition: a shift from a mindset that’s focused on accumulating assets for retirement to one that’s focused on distributing wealth and drawing down resources. Usually, this period can be confusing and chaotic, but it doesn’t have to be. Understanding the underlying issues is actually the key. You also need to recognise the long-term effects of the decisions you make today.

Apart from those who are planning to retirement, people who have just retired are also in the retirement zone. During this stage, you also want to evaluate your financial situation as to whether or not you’ve made the right decisions so far. You will also consider whether or not adjusting your overall plan to reflect your current expectations and circumstances.

When retirement, the first question you should ask your self is your readiness to retire. Normally, many struggle answering this question because it needs to be considered on two levels. The first, and probably the most obvious, is the financial side. You need to ask your self “Can I afford retiring now?” On another level, though, the question relates to the emotional issues surrounding retirement–how prepared are you for this new phase of your life?

For more on retirement, click here: https://thewest.com.au/business/your-money/the-7-mistakes-retirees-are-making-with-their-money-ng-b88849313z