Here’s a piece listing what retirees wish they had known before they retired. The highlights:
Many retirees are surprised by the costs they faced in retirement, with health care costs leading the charge.
Thirty-seven percent of those surveyed say health care costs have been higher than expected in retirement, 45% say their total health care costs are just what they expected, and just 9% say they have been lower than expected.
About one quarter of retired investors say living expenses and taxes have been higher than expected after they retire.
Here’s why they are surprised — they don’t think about retirement living costs.
I know, this should be the FIRST thing they consider before they retire — what their retirement budget is — but the vast majority of people don’t do this.
Later on from the article:
According to the Wells Fargo survey, very few people are mapping out their retirement plans, with just 20% of those surveyed saying they have done the detailed calculations to determine how much income they will need in retirement, more than half of those surveyed (48%) are unsure or have not thought much about how much money they will need in retirement.
So they don’t think about how much they will spend in retirement? No wonder they are surprised!!! Yikes!
I think most people kind of spitball it when it comes to retirement and say “I think we can make it” with little to no financial calculations to help them decide one way or the other.
I think they also don’t build in margins of safety in case their spending (like that for health care) is higher than they expect.
I don’t know why I’m even surprised any more…