10 Retirement Lessons We Should All have

Many retirees look back on their retirement planning with regrets and wish they could have done things differently. Below we highlight some of the most important lessons we can learn from their experiences.

1. Get Professional Advice Early
   Many retirees regret not seeking professional financial advice sooner. They thought their workplace retirement fund contributions were enough, only to realise later that they needed more help structuring their investments, planning for taxes, and preparing for retirement.

2. Start Investing Early in Your Career
   Starting to invest as early as possible is key. Many retirees wish they had begun saving with their first paycheck instead of delaying due to life expenses like buying a home or raising children.

3. Use Tax-Efficient Retirement Options
   Retirees often regret not taking advantage of modern retirement annuities that offer tax benefits. Many avoided these because of old misconceptions or fear of penalties.

4. Preserve Retirement Funds
   Withdrawing retirement funds when changing jobs was a big mistake for many. They regret not preserving their funds to allow for compounding growth, instead spending it on short-term expenses like vacations or car payments.

5. Join Medical Aid Early
   Many retirees joined medical aid too late and now face expensive late-joiner penalties. It’s important to join a medical scheme when young to avoid these lifelong financial burdens.

6. Don’t Underestimate Healthcare Costs
   Healthcare costs are often higher than expected. Even with medical aid, retirees find that frail care, private nursing, and assisted living costs are difficult to cover.

7. Avoid Debt Before Retirement
   In the years leading up to retirement, paying off debt is crucial. Many retirees regret spending extra cash on luxuries rather than boosting their retirement savings.

8. Think Carefully Before Retiring Early
   Retiring early can seem appealing, but it often means living with a fixed income for decades. Some retirees wish they had continued working longer to ensure they had enough savings.

9. Set Retirement Goals
   Planning what you want to achieve in retirement is as important as planning your finances. Many retirees feel unfulfilled because they didn’t set goals for how they would spend their time.

10. Downsize Sooner
    Holding on to a large family home can become a burden. Many retirees wish they had downsized sooner to enjoy less maintenance, more security, and fewer responsibilities.

In summary, properly thought out decisions when handling retirement funds is always best. Starting to contribute early, selecting the investment wisely by getting expert advice, avoiding unneccesary withdrawals are some of the basic considerations we must have.

Source: Moneyweb