There are many different types of challenges that come along with retirement planning. It’s important to take them on head-first before they become larger problems. Some of these challenges include early retirement, lack of liquidity, divorce, and age gaps in marriage.

Early Retirement

Retiring early can sound like a dream to some. However, people that have a large chunk of retirement savings in an employer-sponsored plan will face early withdrawal fees if they take money out before age 59 1/2 – or 55 in some cases. If you find yourself wanting to retire early and avoid penalties, consider keeping long-term savings in a tax-free or taxable account.

Lack of Liquidity

The less you have in liquid assets, the more challenging retirement planning becomes. You want to make sure you have enough liquidity to cover expenses. However, you will not want it all cash as you will be missing out on potential growth. People with largely illiquid assets are often owners of multiple homes that aren’t necessarily deriving enough money for retirement. “Improving their liquidity means selling an investment they’ve depreciated over many years and can result in a huge tax bill,” Joel wrote. He advises his clients in similar situations to calculate the income deriving from these investment properties; sometimes it is a positive contribution, but other times it is insignificant or negative.

Divorce

Divorce can be emotional enough as it is but considering your steps moving forward can be even more challenging. Divorcees will have some major life changes and expenses they’ll face as a newly single person. Take some time to think before making any decisions.

Large Age Differences

Couples with a large age difference face challenges in retirement planning because one expects to live much longer than the other. Knowing when each spouse will retire, what age to draw Social Security, and how much money to save and grow for the surviving spouse are steps to take in planning for retirement.