If your financial goal in retirement is to worry about nothing, it's good to be aware of everything.

Answer:

1. Underestimating the impact of inflation
2. Underestimating how long you will live
3. Overestimating investment income

Questions:

• 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?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

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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NGPF's Investing unit will arm your students with valuable knowledge and skills in investing for their future

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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

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.