Retirement Mistakes

  • By Jen Steever
  • 07 Jun, 2017

Planning Pitfalls

3 Big Retirement Mistakes Seniors Make (And How To Avoid Them)

There's a lot of pressure that comes with planning for your retirement. It's such an individual process for everyone, which makes it difficult to figure out the best course of action for your situation. That's why so many seniors turn to experienced financial planners to help them through the process. But before you explore the different types of financial services available to you, you'll do well to learn about the particular pitfalls seniors tend to experience when planning for their retirement. We've outlined three of them below.

Not saving enough

Let's face it: no one likes to be told to cut back on their spending. Oftentimes, seniors would rather enjoy that new car or fancy vacation early on, while they're still in excellent health, rather than put it off in order to potentially live more comfortably in retirement. There are so many unknowns at play here, and in many cases, it comes down to priorities. However, failing to save enough -- or starting to save early enough -- can be a huge problem for many seniors. By the time they realize they've come up short, it may be too late to make and save more. But if you start working with financial planners early on, you can come up with a plan that allows you to enjoy your retirement and make sure you have enough to live off of.

Relying on Social Security or company pension

If you think you'll be all set with the payments you'll receive from Social Security or your company pension, you may need to think again. Social Security has never been a "sure thing," and many benefit plans have been converted or are substantially underfunded. Social Security payments make up at least half of all income for 65% of retirees, but it's never advisable to count on that. It's much smarter to start saving for retirement on your own; not only will you be prepared if the worst should occur, but you'll also be able to live a much more comfortable life if everything does pan out.

Underestimating healthcare or long-term care costs

Studies have shown that Americans tend to dramatically underestimate the amount of long-term care they'll eventually need, as well as its cost. And since the future of Medicare may hang in the balance, seniors may not be able to depend on that to cover medications, services, or procedures you may require in the future. If you grossly miscalculate how much your health insurance may cover in the future, your unexpected medical costs could wreak havoc on your financial stability. Although there's a lot that will always be up in the air, working with a financial services expert can help you be prepared in any number of circumstances.

Whether you're quickly approaching retirement age or you need some help managing your finances now that you're out of the workforce, our financial services can help. For more information about financial planning in Norfolk, Virginia, contact S2S Silver Services today.



By Jen Steever 07 Jul, 2017
from J. Elvin Dashiell and the Senior Information Corner
By Jen Steever 23 Jun, 2017

I have received so many questions over the years regarding the safety of certain investments so I would like to share with you about "safe" and "no risk" investments. I would like to define what those terms mean and how they apply to financial planning. Customers often believe investment choices are supposed to become more conservative and less risky as they approach retirement. They don't always know how to evaluate an investment's risk.

By Jen Steever 14 Jun, 2017
Approximately 45 million people are enrolled in Medicare due to their age, so if you're a senior over the age of 65, you're probably at least a little familiar with what these plans can offer. While original Medicare can provide coverage for vital services, these policies often don't cover every expense. That's why Medicare supplement policies are so popular: they can help bridge these gaps. But because there are so many Medicare supplement plan options to choose from, it's easy to become overwhelmed and confused. Below, we've explained these supplemental plans in a bit more detail.
By Jen Steever 07 Jun, 2017

There's a lot of pressure that comes with planning for your retirement. It's such an individual process for everyone, which makes it difficult to figure out the best course of action for your situation. That's why so many seniors turn to experienced financial planners to help them through the process. But before you explore the different types of financial services available to you, you'll do well to learn about the particular pitfalls seniors tend to experience when planning for their retirement. We've outlined three of them below.

By William Bryant 05 May, 2017

Recently, I received a question from an anxious potential customer who was about to turn 65. Her greatest concern was the confusion about all of the decisions that she needed to make with respect to Medicare. She asked me to simplify that process for her. From Medicare Advantage plans, Medicare Part D prescription drug plans , to Medicare Supplement plans (Medigap plans), Medicare IS confusing! As a matter of fact, the primary statement that I hear from people who are going on Medicare is, “I have never experienced anything as confusing as Medicare.” I am communicating this in a blog in an attempt to reassure seniors that they are not alone in their frustration. Let me try to explain why the information might be confusing.

First, you have several printed materials from the government. The way the material is written, the information often seems to contradict what you read in other publications. Secondly, you may have well-meaning family or friends who provide their own understanding about how Medicare works. Lastly, you receive stacks of mail and materials from many different insurance companies all stating that their plans are better, cheaper, or both.

By William Bryant 21 Apr, 2017

No matter your age, health insurance plans can be confusing. But if you're a senior over the age of 65, it becomes increasingly important for you to make the right choices with your healthcare. By the year  2030, Medicare enrollment  is expected to rise to 79 million people across the nation. With so many participants, there are bound to be folks who make the wrong decision as to which Medicare policies and Medicare supplement plans they choose.

For many seniors, one of the most pivotal parts of their medical care may be their prescription drug plan. Most seniors will have to determine whether Medicare Advantage (known as Medicare Part C) or the Medicare Prescription Drug Plan (known as Medicare Part D) is the best fit for their needs. If you want to determine whether Medicare Part D is the right choice for you, you'll want to ask your provider the following three questions.

By William Bryant 03 Apr, 2017
Balanced portfolio is yet another term used in the financial consulting business to provide a sense of comfort to all who have an investment portfolio, or what is commonly described as a retirement nest egg.
By William Bryant 24 Mar, 2017
Understanding exactly what's covered under your Medicare plan is difficult enough, but once you add your Medicare Supplement plan options into the mix, you may feel completely overwhelmed. Each policy holder's circumstances will be different, but S2S Silver Services can help you find the Medicare Supplement plans in Virginia that best suit your needs. To help start you off, we've put together a brief guide explaining what seniors need to know about their Medicare and Medicare Supplement plans.
By William Bryant 14 Mar, 2017
As an insurance broker, J. Elvin Dashiell reasoned that as the baby boomer generation neared retirement age, there would be a growing need for assistance with Medicare and other retirement age resources. Eventually, S2S Silver Services was born.
By William Bryant 06 Mar, 2017

Did you know that the average medical expenses for couples aged 65 and older will total $218,000 over a 20-year period? And those are just your medical bills! It's enough to make anyone a little nervous about financial planning for retirement.

If you're nearing retirement age and are concerned about your financial security, there are steps you can take right away to ensure better savings. Here are a few smart  financial planning options  you may want to consider.

Do the Math 

In order to save for retirement, it's important to calculate how much money you'll need to remain financially secure throughout your retirement. If you retire and can't cover your basic expenses, then what was the point of all of those long years of hard work. In order to make the calculations, you'll need to calculate what your guaranteed income will be (social security, pensions, annuities, etc.), and then you'll need to estimate your likely expenses. These will typically include food, housing, transportation, and long term care insurance options. The deficit between these two numbers is your savings gap. In order to cover all of this, you should aim to save the same or more than that gap.

Take Immediate Action

No matter your age, saving for retirement requires immediate action. If you have the opportunity to prioritize your  401(k) contributions , you should absolutely do so. It's incredibly important that you take your savings seriously, especially if you're nearing retirement age. In addition, continue putting money into any savings accounts you may have. Whether your savings gap is large or small, the more effort you put into saving, the better off you'll be in the long run to make adjustments.

Pay Your Debts 

Whether it's student loans or a mortgage on your house, it's important to pay down your debts as much as possible before retirement. The only thing worse than not having saved up enough money is having loans hanging over your head.

Hire a Financial Planner

So far, we've covered financial planning tips you can put into practice right away on your own. These financial planning options are great, but your best bet to do all of these things effectively is to work with financial planners or a financial services company. They know the ins and outs of retirement and can help you effectively plan for the future, come what may. This is where S2S Silver Services comes in. Our financial planning professionals can help you start your valuable retirement planning today!

It's never too early to start thinking about your financial planning options for retirement. The sooner you start saving, the better!

More Posts
Share by: