The 10 Most Expensive Retirement Mistakes—and How to Dodge Them
Retirement is a time to enjoy peace, but costly missteps can turn it into financial stress. Here are the 10 most expensive mistakes retirees make, with dollar values and solutions.
| Mistake | Estimated Cost | Solution |
|---|---|---|
| Claiming Social Security Early | $100,000+ | Delay benefits to age 70 if possible |
| Underestimating Healthcare Costs | $172,500+ | Plan and save for healthcare early |
| 401(k) Loans | $80,000+ | Avoid loans and early withdrawals |
| Ignoring Inflation | Varies – >30% purchasing power loss | Build inflation-protected income sources |
| Missing RMDs | 25% penalty on missed amount | Plan and withdraw timely |
| Not Planning for Long-Term Care | $100,000+ | Buy insurance or save separately |
| Overspending Early Retirement | Varies | Create and stick to budget |
| Ignoring Tax Planning | Tens of thousands in extra taxes | Use Roth conversions, timing |
| Failing to Build Emergency Fund | Unexpected money needed urgently | Maintain 6-12 months of expenses saved |
| Not Updating Plan Annually | Misalignment with goals/market | Review & adjust every year |
About the Author: Robert Chen is a Retirement Finance Analyst at RetireMetric.com, helping retirees avoid costly mistakes and build a secure financial future.
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