Assuming Real Estate Always Appreciate
Many baby boomers bought their houses when the market was still strong with the hope that it'll either remain as strong as it is or appreciate. Real estate prices had a slump during the recession but these days, real estate prices are climbing again. Many baby boomers who retired before the recovery, found that they had a lack of cash flow due to paying for real estate not worth s fraction of the original cost.
Relying On Their Partner's Retirement Plan
If boomers have had multiple marriages, the chances of relying on s partner's retirement plan, along with their own is slim. If your partner dues prematurely, that would mean that half if the income you planned to use to survive financially has been list due to the death if your spouse.
Failing To Save Money
We need money to live, cause without money, we cannot afford anything, even basic necessities. The most reliable way to make money is to work. The trick to saving money Is to manage money, and not be managed by it. You have to learn to control your spending. Spend less and save more. If you fail to control your money, and decide to spend wastefully, you may find yourself working all the life and not have any money for retirement.
Using Home Equity As A Retirement Nest Egg
If there's another slump in real estate, those who bought real estate as an investment may find themselves paying more for something that is not worth a fraction of the original cost.
Relying Solely On Social Security For Retirement Income
Baby bomers are used to w good income. Depending on social security for retirement isn't a good plan because once you're at retirement age, medical bills will increase, abd social security will not be enough to pay for all living expenses.
Addiction To Material Things
Many baby boomers are accustomed to purchasing what they want, when the want it, even when they don't have the money for it. This habit is bound to accumulate more debts for you. If you're not careful, you are likely to spend all the money you'll ever make on settling debts. When people approach retirement age, thinking about simplifying is better than continuing to acquire material things.
Underestimating Their Life Expectancy
These days, people live longer than they did in the past. A lot of people underestimate how long they'll live, so they fail to make plans for retirement. If you're in good health, and think you will love to be at least 80, you can benefit by waiting until age 65 to begin collecting social security.