Maybe you think you don’t really need that much money to be happy, or you expect your cost of living to change drastically when you are retired. If this is your excuse for postponing or neglecting contributions to a retirement savings account, you could be setting yourself up for a big disappointment when you finally say goodbye to the paycheck.
Consider the effects of inflation and any changes in your spending habits in the next few decades. If you plan on traveling, moving to a new home or even relocating, it’s likely that you will need extra funds to make those dreams come to life. Also consider that your mortgage might not be paid off, or you acquire a new mortgage.
Housing accounts for 35.9 percent of average annual expenditures at age 75, according to a 2013 U.S. Bureau of Labor Statistics survey. That’s a significant number, no matter where you live.
Myth 7: My Spouse Will Manage My Retirement Funds When I Die