Side Stepping Retirement Pitfalls

Some common retirement savings mistakes

According to a recent study from the Employee Benefit Research Institute, many people headed toward their golden years aren’t feeling that great about their finances. The report found that just 17 percent of respondents were “very confident” they’d have enough money to live comfortably during retirement. If you’re feeling that way too, the first step toward correcting things is to avoid some of these more common retirement-saving mistakes.

  • Saving for the wrong thing. If you have kids, you’re probably concerned about how you or they (or you and they) will pay for college. You might even be putting off saving for your own retirement so you can save for your kids’ higher education. That would be a mistake. There are many ways for your kids to fund their own college education — from grants to loans to working while attending school. Your priority should be your retirement first, college fund for the kids second.
  • Ignoring your credit. Don’t think that just because you’re approaching retirement you can stop worrying about your credit score. If your score suffers as you age, suddenly you could be paying high interest rates instead of stashing that money away in retirement accounts.
  • Keeping up with the Jones (or Smiths, or anyone). FOMO is real. If you’re constantly worried about having the same new, flashy toy that your neighbors or friends have, there’s a good chance that’s impacting your retirement savings. Try to focus on yourself and your goals and remember that your golden years are the number one priority. That should keep your saving and spending priorities straight.
  • Chris O'Shea

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