5) Lack of Retirement Budget
It is important to have an idea of what kind of retired life you plan to lead. Do you want to live modestly? Or do you plan to pack up and travel around the world? These are factors that many do not consider when they begin saving for retirement. They may save enough for a modest living, and later decide that they want to go out and do and see as much as possible. This will keep those people from truly being able to retire, as they will probably have to continue to work in order to fund those trips around the globe. Having a solid plan ahead of time will help you avoid these issues. Before you retire, track your spending for a year, and add that to any big trips or items you plan to buy. This will give you a good idea of how much you will need to save in order to truly retire, instead of having to keep up some kind of income to live.