4 Mistakes That Derail Your Retirement, According to a Wealth Management Expert
Written by
Gabrielle Olya
Edited by
Brendan McGinley
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Planning for retirement is complex, and even small missteps can have lasting consequences. To help you avoid costly errors, GOBankingRates asked a certified financial planner to share the most common mistakes she sees.
Here are the top mistakes retirees and near-retirees should avoid, according to Kim Potvin, CFP, a Merrill Wealth Management advisor.
Not Maximizing Your Social Security Benefits
Social Security can play an important role in your overall retirement income strategy.
“With people living longer than ever, delaying benefits can lock in a higher lifetime income, boost your spouse’s survivor benefit and even fund legacy strategies like second-to-die life insurance,” Potvin said. “If cash flow isn’t a concern, think of Social Security as a strategic asset — not just a safety net.”
Completely Abandoning Work in Retirement
“The most fulfilled retirees don’t just leave work — they pivot to purpose,” Potvin said. “Whether it’s volunteering, consulting or joining a board, staying engaged brings meaning — and often tax advantages. Retirement is a transition, not a shutdown.”
She recommends staying physically and socially active throughout retirement, which may be done through part-time work.
Delaying Estate Planning
Failing to have an estate plan is planning to let the government decide what happens to your assets.
“Without key documents like a will, power of attorney and healthcare proxy, your estate could face probate, [which is] costly, public and slow,” Potvin said. “Trusts can protect assets from creditors and in-laws, and ensure care for special needs heirs.”
Failing To Prepare for Longevity and Inflation Risks
“Longevity is the real risk, and equities can help hedge against inflation,” Potvin said. “Assume both spouses live to 100 to help ensure portfolios withstand time and market volatility.”
She recommends working with financial professionals who can help you plan for the long term in a personalized manner.
“Choose a wealth management team that understands your family dynamics and can engage multiple generations,” she said. “Forecast cash flow with inflation-adjusted costs for education and long-term care.”
A personalized financial plan can help you and your family prepare for whatever the future holds. The right team will help you forecast costs, protect assets and build a legacy.
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