ORLANDO, Fla. – On average, about 10,000 baby boomers turn 65 each day. People born in this generation are now either in retirement or close to it. But if you’re nearing retirement age, there are some common mistakes that can ruin your whole plan.
When do you want to stop doing sitting in rush hour traffic and working and doing more of what you love? But one in 12 people said they don’t think they will ever be able to retire.
The first common mistake people make: not paying off debt.
One survey found that 40 percent of baby boomers struggle to pay off their credit card debt. And too much debt can make saving a challenge. Retirement statistics show about 38 percent of Americans fail to save because they have too many other expenses.
And 45 percent of baby boomers have no retirement savings at all! Not planning for health care costs is also a common misstep.
The average retiree spends $4,300 out-of-pocket for health care expenses each year.
And a person who turns 65 today has about a 70 percent chance of needing some type of long-term care service later on. Mistake number three, taking care of adult children financially. It costs many people their retirement savings.
A better idea is to encourage financial independence in your kids and find ways to provide non-monetary support.
According to the social security administration, among elderly beneficiaries, about 50 percent of married couples and 70 percent of unmarried people receive half or more of their income from social security.