5) Failure To Be Aware Of Frauds and Scams
Retirees unfortunately are among the most targeted for scams. Be sure to consult an advisor prior to making any investment or laying out a large amount of cash on anything. Scammers will prey upon your desire to grow your savings.
Even if you are not retired or about to retire, always keep a certain level of skepticism when it comes to the investments being presented to you. Do your research first: ask about it and search for it online. You might just find out that this whole system is just an elaborate way for people to get money out of you.
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6) Cashing Out Pension Too Soon
Retirees are easily swayed by the promise of a higher return once they try to put their money on a particular investment vehicle thus pushing them to cash out their entire pension. This is not always the best move to make: investments are highly unpredictable and it can be difficult to look for one that could pay just as much, or even more, as the pension over the long term.
Remember that cashing out on a pension early oftentimes comes at a big cost. Be extremely wary and weigh your options well. The longer your life, the more you are going to miss out on the benefits of the pension if you have cashed out early.