- Having too little. Most people either never calculate or underestimate how much money they'll need to last through retirement.
- Not knowing when retirement will occur. Many workers retire earlier than expected, often before they're ready.
- Living longer than planned. Retirees more frequently are exceeding their life expectancy and thus running the risk of outliving their savings.
- Not facing facts about long-term care. Many people underestimate their prospects for needing care, while relatively few have long-term care insurance or the means to self-fund an extended long-term care situation.
- Trying to self-insure against long life. By opting to access retirement benefits in lump-sum form instead of receiving lifetime payments, people pass up a golden opportunity to self-insure their longevity.
- Not understanding investments. Many workers are responsible for managing their workplace retirement savings plans, yet aren't clear on how the investments within their plans work.
- Relying on poor advice. Many retirees and pre-retirees opt not to seek the guidance of a financial professional and later regret the decision.
- Not knowing sources of retirement income. It's common for a worker to lack a clear idea of where their retirement income will come from.
- Failing to deal with inflation. Many retirees lack a long-term plan for growing income to keep pace with the cost of living.
- Not providing for a surviving spouse. What happens when one spouse dies before the other? That's an issue many couples fail to adequately plan for.
Source: "Public Misperceptions About Retirement Security," a study from LIMRA International, the Society of Actuaries and Matthew Greenwald & Associates.
