Even if you are comfortable in your financial life, even if you are fairly wealthy, there are still pitfalls when it comes to retirement! There are many things that affluent retirees don’t take into account, specifically because of their comfortable financial position. Don’t be one of those people who forget to overlook the risks of tomorrow just because they’re comfortable today! Here are two examples of things that wealthy retirees often forget to add to their financial plans:
- You May be Underestimating How Long You’ll Live.
If you feel like you have enough saved for retirement, have you considered if that amount is enough for you to be comfortable into your 80s? What about in your 90s? Is it enough that you could live comfortably up to your 100th birthday? This is something that many wealthy retirees sometimes forget to consider: There is still a lot of life left after 65. And that is both exciting and concerning from a financial standpoint. So, when developing a retirement plan, it may be a good idea to consider saving more than you think and devising a plan to make what you have last longer.[1]
- Your Lifestyle Needs a Budget and Income to Cover It.
People who are driven and career-oriented can sometimes lose momentum when they retire. They can feel like they have lost a purpose for getting up in the morning, and they can feel a bit aimless when it comes to choosing their next adventure. First off, that’s a totally normal part of retirement! Many people experience this feeling, and it’s not something that has to last forever.[1] But more importantly, once you do find something to be passionate about, those hobbies can tend to cost money. And while those costs may seem small in the short term…consider how much they’ll cost over the course of 20 or 30 years! It may be a good idea to factor your hobbies into your retirement plan so that you don’t end up surprised with more spending than you were expecting.
If you feel secure about your retirement funds, we encourage you to think again. To stay ahead, you must be aware of the next risk that may arise and be prepared for it. One mistake we see amongst retirees who have saved well is that they don’t put enough strategy into figuring out how best to draw down their accounts and use those savings to provide income that really helps them maintain their lifestyle. For someone used to being financially stable, having to strategize to maintain their stability may be foreign, but that’s why we’re here to help.
If you are a person who is confident in your retirement savings, consider reaching out to our professionals for a complimentary review of your finances. We can double-check your assumptions and offer suggestions tailored to your unique situation. So Click HERE to contact us today at SouthPark Capital.
