The biggest mistake many people make just before retirement When people retire, they feel like the biggest financial challenges are behind them. The salary disappears, but it is replaced by a pension, debts are often smaller, and life should become more predictable. However, there is one serious mistake in this picture.
Retirement is not stable – it lacks a financial safety net. And that is where the importance of a financial reserve for a safe retirement comes into play. The right picture shows that unexpected expenses in retirement are not an exception, but the rule.
A study by the Center for Retirement Research, which is quoted by CNBC, shows that 83 percent of American retirees experience at least one major unexpected expense each year, on average amounting to around $6,000 (€5,170). This means about one-tenth of annual earnings.
Topics: #retirement #financial #biggest
