07/13/2026
10 Mistakes People Make Before Retiring
Retirement isn’t just about having a certain dollar amount saved. Avoiding these common mistakes can make a big difference.
1. Underestimating how much they’ll spend.
Many people assume expenses automatically decrease in retirement, but healthcare, travel, hobbies, and inflation can keep costs higher than expected.
2. Claiming Social Security without a strategy.
The best age to claim depends on your health, life expectancy, income needs, and whether you’re married.
3. Ignoring taxes.
Traditional retirement accounts, Roth accounts, taxable investments, and Social Security can all be taxed differently. Where you withdraw money from can matter just as much as how much you withdraw.
4. Waiting too long to think about Required Minimum Distributions (RMDs).
Large pre-tax retirement accounts can create significant taxable income later in retirement if you don’t plan ahead.
5. Not having enough cash set aside.
Having a cash reserve can help avoid selling investments during a market downturn.
6. Underestimating healthcare costs.
Medicare doesn’t cover everything, and long-term care expenses can have a major impact on retirement savings.
7. Keeping the same investment strategy they had at age 35.
Your portfolio should reflect your goals, time horizon, income needs, and risk tolerance—not just your age.
8. Forgetting to review beneficiary designations and estate documents.
Retirement planning and estate planning go hand in hand.
9. Carrying unnecessary debt into retirement.
High-interest debt can reduce financial flexibility and increase stress.
10. Focusing only on investments instead of having a comprehensive financial plan.
Investments are important, but retirement also involves taxes, income planning, insurance, estate planning, healthcare, and making sure all the pieces work together.
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Every situation is different, which is why retirement planning isn’t one-size-fits-all.
