Don’t Waste Your Money: Retirement on Hold

(WHTM) — Are you thinking ahead to a retirement filled with vacations and doing the things you love? For a lot of people, inflation is unfortunately hitting those plans hard, and making them rethink their dreams.

Richard Dansereau’s home has been a labor of love. “We refinished the floor, we put in blinds, we converted the fireplace,” said Dansereau.

But as he approaches retirement he said that high taxes could force him to have to sell his beautiful home. “The property taxes are just spiraling out of control,” said Dansereau.

With inflation running at 10 percent in 2022 and soaring home values raising property taxes, many people approaching their retirement years are realizing they may not have saved up enough money.

Suzanne Powell is a financial advisor and author of “The Ultimate Money Moves for Women Over 50.” One problem that Powell mentions is that people will tend to spend the same amount of money as before retirement, especially since they have move free time.

“Typically the first 5 to 7 years most of my clients are spending exactly what they spent before,” said Powell.

Powell recommends that you push back retirement for a couple years, take fewer and less expensive vacations, and take on a part time job after retiring. “Some of my retired clients are still working at the craft store where they shop at. I have a couple clients who are driving for senior centers or for a dealership”

Otherwise, inflation could really hurt your retirement dreams. If you’re in your 40’s and 50’s, save as much as you can in a 401k. You’ll thank yourself for doing that at retirement time.

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