You Don’t Have a Spending Plan
Failing to plan is planning to fail when it comes to retirement spending. You need to put together a retirement budget, and ideally should do it before you quit working.
Take a hard look at your lifestyle and what it will take to support it. This analysis is critical, and can drive any number of key retirement decisions, including:
- Where you will live
- When you will be able to quit working
- When you should claim Social Security benefits
Once you have enough money saved, figure out how you want to spend that money, said Jim Poolman, executive director of the Indexed Annuity Leadership Council. “It is essential to realize that the money you have now will no longer be replaced by that regular monthly paycheck, so budgeting is crucial,” he said.