Biggest mistakes made when saving for retirement

ended 04. October 2021

A journalist at the Daily Express is writing an article on the biggest mistakes people make when saving for retirement - and the pitfalls to avoid. Keep your responses to 2-3 sentences max! No need for an essay!
 



 

5 responses from the Newspage community

Star Quote
"People all too often make mistakes when saving for retirement. Common mistakes include starting too late, not committing enough money to retirement planning and making poor investment decisions. The risks of making mistakes can be reduced by getting advice from an independent financial adviser."
Star Quote
"The biggest retirement saving mistake is not starting early enough. Most people don't appreciate the compounding power of long-term investment returns, nor the value of getting into the savings habit early in their working life. So the lesson is, even if you have to start small, start as early as possible."
"One of the mistakes people make is to set up a pension when young, for example, in their twenties, and then never revisit it again. You need to look at your Financial Plan regularly and update it to ensure you are still on track. Another mistake is waiting too late to start. If you start planning in your twenties, it is much easier than waiting until you are in your fifties. Your money will have an extra 30 years to grow. A final mistake is basing 30-year investment decisions based on 30 minutes of news. People might read something in the paper and feel they have to act for the short-term based on this, when sometimes the best thing is to reflect and focus on the long-term."
"The biggest mistake people make is only saving what they say they can afford, as it's normally too little. They need to speak to a financial adviser to find out how much they should be saving, and then work their living costs around that figure. Not the other way round."
"One of the biggest mistakes people make when saving for retirement is not having a plan in place. Think about when you might want to retire and how much you may need to live on in retirement. Then put a plan in place to achieve this with the appropriate level of pension or savings contributions. Regularly re-assess to make sure you remain on target so you can retire on your terms with the retirement lifestyle you want."