Mistakes are made by people of all ages. It is risky to make wrong decision if you are a mature person who is about to retire in the nearest future.
Here is a list of the most common mistakes retirees make:
1. No Changes in Lifestyle after Retirement
Expenses should be adjusted according to your period of life. Your life depends on your budget at all times. It is especially important for retirees to understand this fact and learn to live without extra expenses. Working people can afford buying more expensive food, clothes and other items. If you are retired, you do not earn as much as you did a few years ago. From now on you will need to cook on your own instead of eating out and refrain from spending money on expensive purchases.
2. Applying for Social Security Too Early
Do not think that applying for Social Security is a good decision for a 62-year-old person. If you do, it means you will get around 25 per cent less than what you could receive on your full retirement when you turn 66. And just imagine – you’ll get 32 per cent less if you wait until you turn 70. If you have enough money to pay your current bills, refrain from applying for benefits and do it a few years later. Remember that your target age is 70. This is when the benefits are maximum.