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Nobody wants to have to continue working just because they overlooked a preventable problem in the past.
This means that if you spend too much, you risk running out of money early.
This may mean receiving less money when you need it most.
Not Considering Cost-of-Living Increases
The cost of living generally rises each year due to inflation.
see to it you factor inflation into your retirement expenses.
Social Security isnt designed to be the only source of income for retirees.
Instead, its supposed to supplement pensions, savings and other sources of retirement income.
For the average worker,Social Security benefitswill replace only 40% of their pre-retirement income.
The rest will need to come from other sources.
Social Security benefits do get increases for cost-of-living hikes, but the program is already strained at the moment.
Atcurrent tax rates, the Social Security fund may become insolvent and have to decrease benefits in 2033.
Its better to have savings and other sources to supplement your retirement income.
Medicare covers a lot, but it doesnt cover everything.
Youll likely need to cover supplemental insurance, co-pays, dental care, eyeglasses and other health-related expenses out-of-pocket.
It may be a good idea to set aside additional savings specifically for your future healthcare costs.
you could also look into options like health savings accounts while youre still working.
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