5 dumb decisions that put you at risk of going broke in retirement

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Everyone wants to be able to retire comfortably, but making that dream a reality is easier said than done.

Even if you’re socking money away here and there, there’s no guarantee that you’ll have enough cash for your golden years. In fact, you could be sabotaging your long-term financial goals without even realizing it.

Here are five mistakes that can leave you feeling the pinch in retirement.

Find out now: How much do I need to save for retirement?

SEE ALSO: A financial planner explains how best to protect investments in retirement

1. Saving without a plan

Saving for retirement can be difficult when you don’t have a plan in place. You may think that you only need to stash 10% of your income in your employer’s 401(k). But depending on how much you’ve already saved (and how much money you’ll need in retirement), you might need to save 15% or even 20%.

A popular quote says that failing to plan is planning to fail. If you don’t take the time to think about your retirement budget and make sure that you’re saving enough to meet your financial goals, you run the risk of shortchanging your nest egg over time.

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2. Leaving free money on the table

Contributing to a 401(k) is one of the best ways to start saving for retirement but not everyone uses it to full advantage. According to a recent study, 25% of employees don’t save enough in their 401(k) accounts to get the company match. Over a 20-year period, each of these workers misses out on the chance to save $42,855, on average.

When you’re saving for the future, every penny counts. Unless you can’t afford to contribute the bare minimum, there’s no reason to miss out on the employer match.

Check out our 401(k) calculator.

3. Letting your debt linger

Carrying debt into retirement can put a strain on your budget. Failing to pay off student loans, credit card debt or mortgage debt can limit your ability to enjoy a comfortable retirement.

If you’re stuck in debt, it’s a good idea to brainstorm ways to get rid of it as soon as possible. You can begin by looking for ways to make the debt you’re carrying less expensive. For instance, you can transfer your credit card debt to a single card with a 0% interest rate or consider refinancing your home.