Experts say this retirement decision is the ‘biggest retirement decision’

One expert says that this is the 'biggest retirement decision you've ever made.

As people prepare for retirement, there are many issues to consider, but one of the most important ones is one, according to one expert.

Silvur founder and CEO Rhian Horgan said in a video above that it was probably the biggest retirement decision you make because of the differences in taxes in different states.

The second big decision that people should think about is this one. With the average retiree spending upwards of $5,000 a year on health care costs and retirement, it's something they have to plan for, Horgan said. As the numbers become clear to them, I think they're taking a more proactive step and adding retirement health care costs to their budgets. After a rocky stock market in 2022, Horgan provided three more tips on how to save more for retirement in 2023. If you're working off numbers from last year, they're probably not correct. The numbers should be updated, according to Horgan.

After a rough first three quarters last year, those who stopped looking at their 401 k or other retirement account balances may be surprised to find that their balances rebounded some in the final quarter of the year. The S&P 500 rebounded 7% in the fourth quarter after falling 25% over the previous three quarters.

In addition to calculating current account balances, Horgan told Yahoo Finance Live that consumers should also track their expenses. It can still affect people's monthly budgets if inflation slowed to 6.5% in December.

When you update your numbers, think about spending and not just updating your financial savings numbers. Horgan said that spending is about making sure that you understand how the inflationary environment is impacting what your monthly spending is and what it will be in the future.

In order to get a clear picture of what is expected in retirement, workers should add their expected Social Security benefits to their other sources of retirement income. The cost-of-living increase to Social Security should help increase the ultimate income in retirement.

I would think about retirement income, and check in to see what your retirement income looks like. Social Security increased the cost of living adjustment by 8.7% last year. It's likely that your retirement income is more likely to be higher looking forward than the last time you checked, according to Horgan.

Despite the fears that people may not have enough saved for retirement, Horgan said it's never too late to start investing to save for the future.

As consumers are starting out the year, the key thing to think about is that most consumers have time on their side. Horgan said that investing is really critical at this moment in time.

She emphasized that Investing for retirement is a long game, so forget about the day-to- day market fluctuations.

Most retirees are thinking about investing over a 10, 20, 30 year period, according to Horgan. This isn't about perfectly timing the market, but it's about thinking about putting your capital to work over the next couple of quarters.