Whether one is already enjoying retirement living or preparing for it, the right financial planning is key to enjoying one's golden years. Many older adults can be flustered by some aspects of their investments, however, and these mistakes can prove costly.
AARP.org recently suggested that one of the big hazards is not properly knowing the difference between credit and debit cards.
Debit cards withdraw money automatically from an account, so individuals need to have that amount in their checking. Otherwise, one may very likely incur overdraft fees.
Paying income taxes with credit cards may seem like an appealing decision, especially if one is short on cash, but this can be another blunder. The IRS will charge a fee to anyone who decides to do this and it costs 2.4 percent of the total income tax.
Older workers should also try to not touch their 401(k) plans until retirement, even if they can do so. The news source states that this can be responsible for a significant drop in beneficial interest rates.
Another way to try and save additional money for retirement is to open up a new account just for savings and have some of each paycheck deposited into it, according to U.S. News & World Report.