Abruptly moving into retirement without putting much thought into it could cause irreparable damage, according to contributor Tom Sightings, in a U.S. News report.
One mistake retirees make is moving to a new house immediately after retirement, instead of renting for a year to try it out. Any number of environmental or social factors could cause you to change your mind. Perhaps the weather is too cold, it’s hard to find new friends or you aren’t ready to move that far away from family. There are many scenarios that could make you decide that buying a house in a dream location wasn’t such a great idea after all.
Purchasing a second home is another mistake retirees often make. Even if you can afford another house payment and decide to rent it out while you are away, a second home could take more effort than someone in his or her golden years wants to deal with. Renters aren’t automatically responsible just because the landlord is retired.
Many retirees dream of buying a boat, but it is a better idea to lease a boat first. You might discover you want a different boat, or no boat after all. You can easily change your mind on what boat you want to buy when you don’t already own one.
About 50 percent of eligible Social Security recipients collect on it the first chance they get (age 62), but the longer you wait, the pot increases 7 percent every year (until age 70).
Dropping your health insurance after retirement could be a serious gamble that won’t pay out. Whether it is Medicare, your old employer’s or your spouse’s insurance, get coverage.
Align plans with your spouse ahead of time. Many couples don’t do it. This not only wastes time but also could cause unnecessary friction in the marriage. Compromise is key.
After your planning is done, don’t be scared. Once all the decisions are weighed out, the only thing left to do is to commit to those choices and move on with your life.