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b'While we all make financial mistakes, it\\u2019s easier to bounce-back and get-back-on-plan while we\\u2019re young\\u2026 and do-able - but harder to bounce back as we get older\\u2026 because, a) retirees typically do not have a nice regular paycheck coming in but have to carefully make the most of their retirement savings to meet monthly expenses, and b) because, unlike say a 25- or 35-year old, folks in retirement do not have the luxury of time to make up for mistakes \\u2013 so the margin of error is much smaller for retirees than it is for younger workers.

So I want to forewarn you, and keep you from making some of the worst mistakes I\\u2019ve seen people make in retirement. I\\u2019ll also share a link to an article on this topic \\u2013 from FinancialWord.com - on my website \\u2013 www.OnTheMoneyRadio.org - so you can listen to my thoughts on this subject and read more about it. So let\\u2019s get started with the worst mistakes people make in retirement.
For most folks, retirement means a sudden drop in monthly spending power\\u2026 because now \\u2013 and for the rest of their lives \\u2013 they\\u2019re fully dependent on their savings, social security, and a pension check if they\\u2019re lucky
1) Not Changing Your Lifestyle After Retirement

Retirement is often a time of significant financial change \\u2013 from having a paying full-time job to having no regular pay check for the rest of your life (in most cases). For most working class folks, this means a sudden drop in monthly spending power\\u2026 because now \\u2013 and for the rest of their lives \\u2013 they\\u2019re fully dependent on their savings and social security, and a pension check if they\\u2019re lucky. But one of the biggest mistakes retirees make - is not adjusting their expenses to their new budget-dependent life \\u2013 where food, clothing and entertainment expenses must be adjusted because they are no longer earning the same amount of money as they were while in the work force.

Retirees must also account for healthcare and long-term-care costs as a person ages. So talk to a trusted financial planner to make adjustments to your budgeting and planning, so you are prepared for any eventuality.

2) Failing to Move to More Conservative Investments

Once you have retired, you can\\u2019t afford large negative swings in your savings. So you have to balance out portfolio growth with a reduced level of risk, and think more short-term because you may not have the luxury of riding out long-stretches of a down-market without withdrawing money or selling shares. So while you should still keep some money in aggressive growth investments, make sure you reduce your risk exposure and factor in worst-case scenarios such as an extended bear market and how you plan to weather that\\u2026 all I am saying is don\\u2019t be overly optimistic or overly pessimistic, but plan well so you can ride out the worst, should it so come to bear.

3) Applying for Social Security Too Early

Now\\u2026 I think most of my regular listeners are aware of this because I have spoken often about the penalties associated with early withdrawal of social security\\u2026 so to recap \\u2013 just because you are eligible to apply for Social Security at age 62 does not mean that you should. If you tap into social security at age 62, you\\u2019ll get about 25% less than what you would get on your full retirement age of 66. You will also get 32% less than if you wait until age 70. So if you\\u2019re in reasonably good health, delay your application for retirement benefits until 66 for sure, and until age 70 if you can. If that means taking a part-time job \\u2013 well below your qualifications even \\u2013 I\\u2019d say it\\u2019s worth doing\\u2026 if it helps you meet expenses and allows you to put off social security withdrawals.

4) Spending Too Much Money Too Soon

When you retire and have saved and invested regularly, you may be in the happy state of having a pretty large nestegg\\u2026 but make sure you don\\u2019t spend too much money too so...'