2 pitfalls Demandby members & Baby Boomers must avoid.

As baby boomers near their retirement years they're discovering what previous retirees have been complaining about for years.

There's lots of information on how to plan for retirement, but not nearly enough on how to plan retirement itself.

The stakes are perilously high. Errors made in the years surrounding retirement can haunt you for life. You can end up with less money, or less retirement, than you'd planned. Or you can face big tax bills that could have been avoided had you known better.

2 major pitfalls every person faced is

1. Living too long to the extent that they outlive their savings. No money.
2. Living shorter due to unexpected health problems. No health

Either way, the solutions for both the problems above can be solve by having residual income.

According to retirement income experts, are some of the most common mistakes and how to avoid them:

Underestimating your life expectancy - Living too long.

Financial planners used to routinely create retirement plans that stopped at age 75, because the chances seemed pretty good their clients would be dead by then. (The average life expectancy at age 65 is 10.3 years for men, 12.4 years for women.)

But averages don't tell the tale. You may be in better health than the average Joe or Jane, take better care of yourself or have better genes. Even if you don't, your spouse might; Fidelity Investments has found that the chances of one member of a couple living past 90 are about 50%.

So now more planners are using 90 or 95 as the projected age of death, and you might want to project even longer:

Assuming you'll be able to work as long as you want - Unexpected health issue

The baby boomers are famous for proclaiming that they'll work past retirement age; an AARP study last year found 79% predicted they would continue working at least part of the time during their retirement years.

How they'll actually feel once they're in their 60s and 70s, though, is an open question. Right now, the typical retirement age is 62, according to the Employee Benefit Research Institute, and 40% of retirees say they left the workplace earlier than they'd planned, often because of illness, disability or layoffs.

In fact, 42% of women over 65 and 38% of men in the same age group have disabilities, according to the U.S. Census Bureau. Only 12% of people over 65 are still in the work force (16.9% of men, 8.9% of women).

Many people find that even without chronic health problems, their energy begins declining in their late 60s and 70s, although a few are able to work into their 80s or even 90s.

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Failing to factor in health-care costs

I've heard from folks who didn't bother to check health-care premiums until after they took early retirement -- and then were stunned by the four-figure monthly premiums they were asked to pay.

Employers increasingly are eliminating retiree health coverage, and you can't get Medicare coverage until you're 65. Even then, there are plenty of costs the government program doesn't cover. Fidelity projects the average couple will need nearly $200,000 at regular retirement age just to pay for out-of-pocket medical costs for the rest of their lives.

Long-term care costs can be particularly devastating. A 65-year-old man faces a 27% chance of needing long-term care, said actuarial expert Christopher Raham, while the same age woman has a 32% chance.

"Together, a couple has a 50% chance of having a long-term care 'event'," said Raham, a senior actuarial adviser for Ernst & Young in Atlanta and head of the company's retirement income innovation team. "And the average cost is about $150,000."

Buying long-term care insurance in your 50s or 60s can help you cover the expense if you can't "self insure" by building up a sufficient nest egg.

If you plan to retire before you qualify for Medicare, make sure you investigate your private health insurance options and have enough income to pay the premiums. If you don't, you might want to delay retirement a few more years until you do.

Demandby is working out a "Pay Per HealthCare" whereby members can get paid to educate others on the importance of planning for medical care during retirement age.

Demandby Medicare Optima Series builds up a marketing commission for all participants each time they recommend others and indirectly these monies can be use to offset future premiums.

Look out for this launching soon. Membership has its privileges. JOIN US NOW>