Retirement savings are crucial for financial security in your golden years. However, many people make mistakes that can jeopardize their retirement nest egg. Here are the top 5 mistakes people make with their retirement savings:

One of the biggest mistakes people make is not starting to save for retirement early enough. The power of compound interest is incredible, and the earlier you start saving, the more time your money has to grow. Waiting until later in life means you’ll have to save a larger portion of your income to catch up.

Many employers offer retirement savings plans with matching contributions. Failing to take advantage of this free money is a huge mistake. Make sure you contribute enough to your retirement plan to receive the full employer match – it’s like getting an instant return on your investment.

Putting all your retirement savings into one investment is a risky move. If that investment performs poorly, your entire savings could be wiped out. It’s important to diversify your investments across different asset classes to spread the risk. Consider investing in stocks, bonds, real estate, and other options to protect your savings.

Withdrawing money from your retirement savings before you reach retirement age can have serious consequences. Not only will you face penalties and taxes, but you’ll also miss out on the potential growth of that money over time. Avoid the temptation to dip into your retirement funds early unless it’s absolutely necessary.

Failing to account for inflation and rising healthcare costs is a common mistake. The cost of living will likely increase over time, and healthcare expenses can be a significant drain on retirement savings. Make sure you factor in these costs when planning and saving for retirement.