{"id":6890,"date":"2020-11-13T07:00:24","date_gmt":"2020-11-12T23:00:24","guid":{"rendered":"https:\/\/www.infinitysolutions.com\/?p=6890"},"modified":"2020-11-11T16:58:36","modified_gmt":"2020-11-11T08:58:36","slug":"ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire","status":"publish","type":"post","link":"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/","title":{"rendered":"Ten Financial Mistakes Which Mean You May Never Be Able To Retire"},"content":{"rendered":"<p><span style=\"color: #000000;\">We\u2019re all living longer. Official<\/span> <a href=\"https:\/\/www.ssa.gov\/cgi-bin\/longevity.cgi\">US government statistics<\/a><span style=\"color: #000000;\"> indicate that a girl born in 2020 will live to the ripe old age of 87 while a boy will reach 83.<\/span><\/p>\n<p><span style=\"color: #000000;\">That\u2019s brilliant news\u2026.or is it?<\/span><\/p>\n<p><span style=\"color: #000000;\">Well, it is if your golden years are worry-free, but will they be? Will you have enough money to fund the comfortable retirement you deserve after a life of hard graft?<\/span><\/p>\n<p><span style=\"color: #000000;\">They say that money doesn\u2019t make you happy, but it certainly contributes to a decent quality of life. Let\u2019s face it, there\u2019s little point in living into your eighties if you are scraping by and miserable.<\/span><\/p>\n<p><span style=\"color: #000000;\">That\u2019s why building up a retirement pot which will enable you to retire and live out your days in comfort without having to face tough<\/span> <a href=\"https:\/\/www.yourlifechoices.com.au\/health\/news\/eat-or-heats-tragic-consequences\">\u2018eating or heating\u2019<\/a> <span style=\"color: #000000;\">choices is really important.<\/span><\/p>\n<p><span style=\"color: #000000;\">If you are going to live for two, three, or even four, decades or more after you stop working, there are some fundamental mistakes that you need to avoid.<\/span><\/p>\n<ol>\n<li>\n<h5><span style=\"color: #000000;\"><strong>Not saving into a work pension plan<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">If your place of work offers a company pension plan, invest in it. Wherever in the world you are, there will be significant tax advantages to saving this way and, if you\u2019re lucky, your employer will also be contributing. Never pass up this opportunity to boost your pension pot.<\/span><\/p>\n<ol start=\"2\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Started saving too late<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Not saving early on in their careers is one of the biggest mistakes people make in their retirement planning. Never underestimate the power of time when it comes to building wealth. Compound interest is the magic ingredient which makes savings grow and the longer it has to work, the bigger the growth will be.<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Taking a government pension plan too early<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">If your government pension is going to be your main source of income when you retire, you would be as well to delay taking benefits early. In any case, this decision is likely to be out of your hands with governments around the world<\/span> <a href=\"https:\/\/www.schroders.com\/en\/insights\/economics\/world-pension-ages-on-the-rise-when-will-you-retire\/\">raising the age at which state pensions are payable<\/a>. <span style=\"color: #000000;\">If you live in the UK or Ireland, for example, and you are under the age of 40 you won\u2019t be getting anything until you reach at least the age of 68 (and this could well rise).<\/span><\/p>\n<ol start=\"4\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Cashing out company pensions when changing jobs<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">It may be tempting to bank a lump sum from a pension when you move jobs, and many people do it, but resisting the temptation and keeping your savings invested \u2013 either where they are if you can, or rolling your nest egg into a new pension or tax-effective investments \u2013 will pay dividends later on. Staying invested is by far the smartest choice.<\/span><\/p>\n<ol start=\"5\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Playing it safe with investments <\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Many people believe that their money is best protected by keeping it in a savings account and that they are avoiding risk by keeping it there. But that is a fallacy. Their supposedly \u2018safe\u2019 bank deposits are at risk of erosion due to inflation. Investing in stocks carries risk too \u2013 anyone who tells you otherwise is lying \u2013 but the risk is manageable if you invest carefully and thoughtfully. Don\u2019t play it too safe and miss out on the upside which the stock market can bring but do seek advice on how to invest wisely taking into account your tolerance to risk.<\/span><\/p>\n<ol start=\"6\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Prioritising your children\u2019s education over your future financial security<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Pension first, education second. If you can\u2019t afford both, you should definitely prioritise your financial future over your child\u2019s university fees. Your children will have other options open to them such as low or no-interest loans and other forms of financial aid and more time than you do to get their financial ducks in a row.<\/span><\/p>\n<ol start=\"7\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Relying on retirement calculators<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">The internet is awash with these and they can be a useful starting point to use when looking at your financial situation but they can never provide an accurate answer to the question of how much you need to save for your retirement. There are many different factors to take into account when planning for your post-work future and retirement calculators are a flawed approach to a complicated dilemma which doesn\u2019t have a one-size-fits-all solution. If you are serious about your financial planning \u2013 and you should be \u2013 there is no substitute for the advice of a qualified financial consultant who can offer bespoke advice based on your personal circumstances.<\/span><\/p>\n<ol start=\"8\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Not considering what you will spend in retirement<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Many people assume that retirement \u2013 when you no longer need money for work travel, clothes, meals on the hoof and so on \u2013 will be less expensive than it is. If your expenses are higher than expected when you retire, you could be in for a nasty shock and may even be forced into a situation where you need to go back to work. And no-one wants that.<\/span><\/p>\n<p><span style=\"color: #000000;\">Well before you retire have a good hard look at your anticipated outgoings \u2013 in particular the fixed monthly costs such as rent\/mortgage, utility bills, insurance, food and travel costs \u2013 and work out the minimum amount you\u2019ll need to cover them. Then you can compare this with your expected income from your various sources, including state pensions and personal investments. If you have done your planning well, income will exceed expenditure. If that\u2019s not the case, you have a problem and will either have to work out a way to up your income, work longer or reduce your costs.<\/span><\/p>\n<ol start=\"9\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Blowing a windfall<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">If you are lucky enough to be left money or property, if you sell a business for a tidy profit or if you are on the receiving end of a significant insurance settlement think hard about what you do with your windfall.<\/span><\/p>\n<p><span style=\"color: #000000;\">Remember, you can only spend the money once. If it is frittered away on fancy holidays, luxury cars or living like a rock star it won\u2019t be there for your latter years. By all means treat yourself but it\u2019s all about balance. A financial bonus of this nature can significantly bump up your retirement pot and give you enviable choices once you retire.<\/span><\/p>\n<ol start=\"10\">\n<li>\n<h5><span style=\"color: #000000;\"><strong>Taking your eye of the ball<\/strong><\/span><\/h5>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">Retirement planning is not a one-off job which can be completed and ticked off your to do list. It requires regular attention and fine tuning as your situation changes and new challenges arrive. Our advisers always recommend at least an annual review to ensure clients are on track with their goals. Any major life changes, including a new job, births, marriages and deaths, may require a readjustment. This is another compelling reason to work with a financial professional who will do the number crunching and calculations with you.<\/span><\/p>\n<p><span style=\"color: #000000;\">As you\u2019ll have gathered, there are a lot of potential financial planning pitfalls which can negatively affect your retirement however, flipping that on its head,\u00a0 think about all the positive steps that you CAN take to ensure that your golden years really are golden.<\/span><\/p>\n<p><span style=\"color: #000000;\">If you\u2019d like help with putting in place a plan to secure your financial future while you\u2019re working and beyond, why not get in touch for a free initial consultation with me at<\/span> <a href=\"mailto:Jregan@infinitysolutions.com\">Jregan@infinitysolutions.com<\/a> ?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We\u2019re all living longer. Official US government statistics indicate that a girl born in 2020 will live to the ripe old age of 87 while a boy will reach 83. That\u2019s brilliant news\u2026.or is it? Well, it is if your golden years are worry-free, but will they be? Will you have enough money to fund&hellip;<\/p>\n","protected":false},"author":4,"featured_media":6891,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[2,153,66,69],"tags":[],"class_list":["post-6890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement-planning-pensions-transfers","category-blog","category-viewpoint","category-financial-planning","category-2","category-153","category-66","category-69","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ten Financial Mistakes Which Mean You May Never Be Able To Retire<\/title>\n<meta name=\"description\" content=\"Building up a retirement pot which will enable you to retire and live out your days in comfort without having to face tough choices is really important.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ten Financial Mistakes Which Mean You May Never Be Able To Retire\" \/>\n<meta property=\"og:description\" content=\"Building up a retirement pot which will enable you to retire and live out your days in comfort without having to face tough choices is really important.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/\" \/>\n<meta property=\"og:site_name\" content=\"Infinity Financial Solutions\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/infinityfinancialsolutions\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-12T23:00:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joseph Regan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@investmentasia\" \/>\n<meta name=\"twitter:site\" content=\"@investmentasia\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joseph Regan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/\"},\"author\":{\"name\":\"Joseph Regan\",\"@id\":\"https:\/\/www.infinitysolutions.com\/#\/schema\/person\/003669b97f6aa45c3efc4b82bf9023ca\"},\"headline\":\"Ten Financial Mistakes Which Mean You May Never Be Able To Retire\",\"datePublished\":\"2020-11-12T23:00:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/\"},\"wordCount\":1211,\"publisher\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.infinitysolutions.com\/blog\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.infinitysolutions.com\/wp-content\/uploads\/ten-financial-mistakes-which-mean-you-may-never-be-able-to-retire.jpg\",\"articleSection\":[\"Retirement Planning &amp; 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