Secret Destroyers of Retirement: Will You Make These 20 Mistakes?

17. Forgetting To Make A Retirement Budget

As reported by The Motley Fool, nearly half of Americans are estimating their retirement needs without a clear plan. This common oversight ranks among the most significant errors in financial planning. Surprisingly, a considerable portion of individuals neglect to calculate the annual income they can sustain throughout retirement based on their savings. For instance, if one has saved $100,000 for retirement, dividing it by ten years yields a mere $10,000 annually.

Upon retiring at 65, this translates to a meager $10,000 per year for the ensuing decade, leaving little room for financial flexibility, especially if one lives past 75. Failing to conduct this crucial assessment beforehand can swiftly deplete savings, leaving individuals heavily reliant on social security benefits. Such a precarious financial position severely limits future planning options.