Although seven in ten Americans (69%) plan to retireof those who don't think they will, 42% believe they will never have enough saving to do so, according to a survey conducted by OnePoll on behalf of Prudentialfor Speaker research.
However, just as important as diligent saving 401(k)s and other retirement accounts is not the only factor in determining a comfortable retirement. Even retirees with substantial nest eggs can struggle if they underestimate other personal financial metrics over the years — like their credit score.
Many people assume their credit score won't affect their lifestyle in their golden years, according to the Florida-based financial planner. Landsberg Bennett Private Wealth Management.
Unfortunately for retirees who put off upgrading credit scoreSHE BEN remain relevant.
Not only do good credit scores it matters for many of the same reasons as early retirement (lower interest rates on loans, better terms for credit cards, etc.), but also for some that may coincide with advancing age, such as the ability to finance medical emergencies or ongoing health care.
Related: What is a good credit score and how can I get one?
Pensioners worse credit scores As a result, it may encounter six unwelcome surprises, notes Landsberg Bennett Private Wealth Management:
1. Higher interest rates on loans
retirees may face financial strain related to a home equity loan, reverse mortgage or personal loan and eventually accumulate significant debt.
2. Difficulty in securing loans
With limited access to financial resources for various expenses, retirees they may have to dip into their retirement savings.
3. Limited access to some rental properties
It may be difficult to secure housing in areas with sufficient amenities or amenities, and landlords may require higher security deposits.
4. Higher insurance premiums
Insurers, including auto and homeowner's insurance, may charge more for coverage or, in rare cases, deny it altogether.
5. Challenges of municipal services
Utility companies may delay or prevent service setup or require higher security deposits and advance payments.
6. Struggles for job search
retirees those who want to take on part-time work for extra cash may face poorer job prospects, especially in roles involving financial transactions or sensitive information.