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 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

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.