4 Biggest Mistakes that Seniors Make With Money: Reaching retirement age may come with plenty of life experience, and rich wisdom. However, just because you’re wise doesn’t mean you can’t still make mistakes. The most common mistakes that older people make generally tend to be financial.
Regardless of how much you think you might know what you’re doing with your money, the truth is that there are some mistakes you may be making that you don’t even realize. If you are over the age of 60, make sure that you’re not making the following money mistakes.
Not Saving Enough
Even though you may have made saving a priority, you may not realize just how much it takes to support yourself. It’s important that you’ve taken into calculation exactly what your living expenses are, and have put away enough to be able to cover them.
It’s also important that you take into account all of your debts. Anything that you owe will directly be deducted from the savings you’ve put aside. Ideally, before you go into retirement you should pay off all of your debts to avoid financial hardship and stress.
Claiming Social Security Benefits Prematurely
Many adults over the age of 60 starts claiming social security as early on as possible. However, holding off on claiming your social security can be one of the smartest things you can do to increase your income later on. Financial experts recommend waiting until full retirement age in order to claim as much as possible. You can grow your benefits significantly by waiting just a few more years.
Not Diversifying Investments
In an effort to be financially conservative, many retirees avoid making risky investments. However, the problem with this is that you’re shutting yourself off to a huge possibility to make big money. It’s important that you diversify your investments, and take risks once in a while.
Be smart, know the market, and consider not only the risks but also the payoff.
Not Living Near Family
As you get older, you will start to need more and more help with a wide variety of things. Whether it’s getting up and down the stairs, or simply going to a medical appointment, you may need to enlist the help of others to be able to take care of yourself. Not only do you run the risk of hurting yourself which can lead to hefty hospital bills, but it can also be emotionally difficult having to tackle age without the help of family.
It’s recommended that you retire next to family members who can help you out. The more help you have, the less you have to worry about in general. It’s very comforting knowing that someone is there should you need help.