Question of the Day: What is the #1 reported mistake related to planning for retirement?
If your financial goal in retirement is to worry about nothing, it's good to be aware of everything.
- Underestimating the impact of inflation
- Underestimating how long you will live
- Overestimating investment income
- Why do you think underestimating the impact of inflation could be a significant mistake when planning for retirement?
- Discuss the importance of life expectancy in retirement planning. How can you plan for an uncertain lifespan?
- What factors should be considered when estimating investment income for retirement? Why might some people overestimate how much income their investments will generate?
Behind the numbers (Visual Capitalist):
"According to professionals, the most common retirement planning mistakes are time-related, like outliving savings or not understanding how inflation can affect a portfolio over time.
The number one mistake? According to 49% of financial planners, it’s underestimating the sizable impact inflation has on the value of retirement savings."
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Check out one of NGPF's most popular investing activities in which students track the long-term performance of stocks they select: 5 Stocks on Your Birthday