Seven Major Retirement Traps

Here are seven things that can destroy your retirement 

6/10/15

The latest issue of Financial Advisor magazine highlighted seven reasons that retirements fail. These are:

1. Divorce. The high cost of getting divorced and the strain of supporting two households rather than one can be a major financial hit.

2. Second homes. The cost of maintaining more than one can be a financial drain in retirement.

3. Adult children. Giving money to family can be a major drain retirement resources.

4. Health care. The high cost of health care has made it a major risk for many retirees.

5. Overspending. Pulling too much income from investments, especially early in retirement, can deplete the retirement resources that are available later in life.

6. Starting a business. Many retirees have a dream of starting their own part-time business in retirement. However, the cost of getting a business off the ground can be a major financial drain that makes their retirement less secure.

7. Fraud. Elder fraud is a major problem in the U.S. as it is common for criminals to target elderly individuals.

These seven causes of financial distress in retirement represent a valuable list of things that individuals should try to avoid in retirement.