Top 5 Mistakes Retirees Make — And How to Avoid Them

Top 5 Mistakes Retirees Make — And How to Avoid Them

Retirement should be the reward for decades of hard work — a time to enjoy life, not stress over money. Yet many retirees face financial challenges that could have been avoided with proper planning.

Here are the **top 5 mistakes retirees make** — and how you can sidestep them with smart, proactive strategies.

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### 1. **Not Having a Withdrawal Strategy**

Many retirees don’t plan how and when to tap into Social Security, IRAs, or pensions. Without a clear strategy, you could deplete your savings too fast or pay unnecessary taxes.

**Tip:** Create a tax-efficient income plan that coordinates all your retirement income sources.

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### 2. **Underestimating Healthcare Costs**

Medicare doesn’t cover everything — and unexpected health issues can derail your finances. Long-term care is one of the biggest retirement risks.

**Tip:** Include **healthcare and long-term care planning** in your financial strategy early on.

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### 3. **Claiming Social Security Too Early**

Taking Social Security at 62 may seem tempting, but it could reduce your lifetime benefits significantly.

**Tip:** Work with a fiduciary advisor to run the numbers and determine the optimal time to claim.

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### 4. **Failing to Adjust Investment Risk**

Many retirees either keep their portfolio too aggressive or get too conservative, which can either increase volatility or lose purchasing power to inflation.

**Tip:** Rebalance your investments to reflect your current risk tolerance and income needs.

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### 5. **Ignoring Inflation and Rising Costs**

Over a 20- to 30-year retirement, the cost of living will rise. If your income doesn’t keep up, your quality of life can suffer.

**Tip:** Plan for inflation by including **growth-oriented investments** and reviewing your plan regularly.

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## The Bottom Line

Avoiding these common retirement mistakes can help you stay financially secure and confident for years to come.

At **Mintco Financial**, we specialize in guiding retirees with **clear, simple financial plans**, tailored to your lifestyle and goals — all through **virtual meetings nationwide**.

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