Common Mistakes with Retirement Planning

The biggest mistake in retirement planning is not planning at all. I know many families who cannot afford to retire because they failed to save money when younger.

So let's assume you are planning and are saving. Moneyland at Time.com has identified The 7 Biggest Retirement Planning Mistakes

1. Assuming you can work until age X
   Two in five retire before they had planned to due to illness or job loss. So start early!
2. Ignoring Taxes
   Take advantage of IRA's and 401(k) reduce the taxes you'll spend for access to your money
3. Not saving enough for Medical
   The average couple who retires at age 65 will spend $285,000 in health-care costs!!!
4. Failing to Establish a Lifetime Income
   Few now-a-days (other than union or government workers) will have a pension for life. The article suggests an "immediate fixed annuity" to supply cash flow.
5. Retiring too soon
   You get less from Social Security if you draw from it the first year you are eligible.
6. Underestimating how long you'll live
   Many will live to 95 or 100 and outlive the money they saved
7. Spending your retirement too quickly
   Spend no more than 4% of retirement savings each year.