Concerns about retirement rank among the most widespread financial worries individuals encounter, typically arising from doubts about whether adequate preparations have been made. Numerous employees discover themselves delaying retirement purely because they remain uncertain whether their nest egg will endure, whilst others leap into it without sufficient planning and encounter monetary difficulties afterwards.

A finance expert has now highlighted the biggest mistake you could make. Fred Harrington, from Vetted Prop Firms, has revealed the one step people need to take before they retire — and it begins from now.

He explains: “The biggest mistake I see people make is waiting until they’re six months from retirement to start planning seriously. By then, your options are limited and you’re often stuck with whatever financial situation you’ve created. The people who retire comfortably are the ones who started ticking these boxes five to ten years before they planned to stop working. The difference between a stressful retirement and a comfortable one often comes down to the preparation you do in the years leading up to it.”

“And that’s not all. There are several other ways through which retirement can be a breeze — it needn’t always be a high-stress period in your life. Speaking about a few more common mistakes individuals make when it comes to retirement, the finance expert explains: “Another common error is being too conservative with retirement planning. People get scared and either don’t save enough or they put everything in low-yield accounts that don’t keep up with inflation. Yes, you want to be careful with your money, but you also need it to grow enough to support you for potentially 20 or 30 years of retirement.”

Harrington continues: “I also see people who assume government pension schemes will cover more than they actually do, or they don’t account for healthcare costs properly. If you start planning now, you can avoid that last-minute financial panic.” Below are six crucial financial moves which can help you retire with confidence rather than worry.

Begin by addressing credit cards, personal loans, and any other high-interest debt that’s draining your monthly budget. This debt doesn’t vanish when you retire – it simply becomes more challenging to handle on a fixed income.

“High-interest debt is like a leak in your retirement bucket,” says Harrington. “Every dollar you’re paying in interest is a dollar that can’t work for your future.”

Prioritise debts with interest rates exceeding 6-7% initially. Once these are eliminated, you’ll liberate funds that can either enhance your retirement savings or decrease the income you’ll require in retirement.

Make the most of catch-up contributions if you’re aged over 50. Retirement schemes typically permit additional contributions for older employees, and your employer may match some of these funds, which is essentially free money.

“If your employer offers matching contributions and you’re not taking full advantage, you’re leaving money on the table,” Harrington explains. “It’s one of the few guaranteed returns you’ll find in investing.”

Examine your current contribution levels and raise them gradually if feasible. Even modest increases in contributions can make a substantial difference over time thanks to compound interest.

Your retirement accounts shouldn’t serve as your emergency fund. Instead, create a separate savings account with 6-12 months of expenses that you can access without penalties or tax consequences.

This fund serves as a cushion for medical bills, home repairs, or other surprises without derailing your retirement plans.

“I’ve seen too many people raid their retirement accounts for emergencies, which creates a double hit – penalties plus taxes,” says Harrington. “A separate emergency fund protects your retirement investments from market downturns and unexpected expenses.”

If you’ve changed several jobs, it’s likely you have a collection of pension pots dotted about. As best practice, track them down and think about merging them into fewer accounts.

This will also give you better control over your asset allocation across all accounts, making it easier to balance risk and growth.

“People often forget about old workplace accounts, but that money is still yours,” Harrington points out. “Consolidating makes it easier to manage your investments, reduces fees, and gives you a clearer picture of your total retirement savings.”

Don’t rely on outdated estimates of how much you’ll need in retirement. Take the time to calculate your actual expected expenses based on your current lifestyle and future plans.

Take into account factors like healthcare costs, inflation, and travel or hobby expenses. Having a realistic understanding of these costs now can prevent unwanted surprises later on in life.

“Too many people use outdated rules of thumb like needing 70% of their pre-retirement income, but that’s not always accurate,” says Harrington. “Your actual needs depend on your specific situation – whether you’ll have a mortgage, your health, and your lifestyle plans.”

Healthcare costs can wreak havoc on retirement savings, and state-provided healthcare doesn’t cover everything. Consider long-term care insurance while you’re still healthy and employed – it’s much cheaper than paying out of pocket later.

“Long-term care insurance is like car insurance: you hope you never need it, but if you do, it can save you financially,” Harrington explains. “The key is getting it while you’re still healthy, because once you have health issues, it becomes much more expensive or even unavailable.”

Additionally, reassess your life insurance requirements. You may require reduced coverage following retirement, or you might wish to maintain some to handle final costs and provide an inheritance for your loved ones.