From Yahoo Finance: 2025-06-11 09:01:00

Many struggle to save for retirement due to poor planning and financial habits. Ensuring you can afford retirement is crucial, with guidelines suggesting mortgage expenses should be 28% of pre-tax income and total debt no more than 36%. If you’re spending more than you earn, you may not be ready to retire.

Having a budget is essential to prepare for retirement, as unexpected expenses like car repairs or medical bills can derail plans. Retirees should have at least one year’s worth of expenses saved in a liquid and conservative investment. Ensuring your portfolio is balanced and not too risky is also important.

Health insurance coverage, especially for those over 65, is crucial in retirement. Medicare is available but not free, and secondary insurance and medication costs should be factored into your budget. Being mentally prepared for retirement, with a social circle and activities outside of work, is equally important.

Ultimately, being financially and mentally prepared for retirement is essential. Saving, budgeting, and having insurance coverage are key factors. Planning activities and social connections outside of work are also crucial for a fulfilling retirement.

Read more: 6 Key Signs You Can’t Afford To Retire