Retirement is a major life transition, one that deserves careful planning and clear guidance. At our firm, we’ve spent decades helping clients prepare for this exciting chapter. Along the way, we’ve seen certain missteps come up time and again, not because people are careless, but because retirement is more complex than it seems from the outside.
Below, we’ve outlined some of the most common retirement pitfalls we help clients navigate, along with some insights to help you avoid them.
1. Rushing to Claim Social Security
It’s tempting to start collecting Social Security benefits as soon as you’re eligible, but that decision could cost you. Your benefit increases by about 8% for each year you delay claiming beyond your full retirement age, up to age 70. That can make a significant difference in your monthly income over the long haul.
The right time to claim benefits depends on your overall retirement income plan, health, longevity expectations, and personal goals. We work with clients to run the numbers and help them choose a strategy that fits their full financial picture.
2. Underestimating Medical Costs
Even with Medicare, retirees face substantial out-of-pocket health care expenses. One estimate suggests a 65-year-old couple may need over $300,000 throughout retirement just to cover medical costs, including premiums, co-pays, and other expenses Medicare doesn’t fully cover.
Building in a realistic buffer for health care is one of the most important things you can do. Whether it’s evaluating long-term care coverage, HSAs, or supplement plans, we help clients prepare for this reality with confidence and clarity.
3. Not Planning for Longevity
Here’s something we often remind clients: Retirement isn’t a short vacation—it could last 30+ years. In fact, the Social Security Administration estimates that 1 in 3 men and nearly 1 in 2 women who are 65 today will live to age 90.
Your retirement income plan should be built to last. That includes accounting for inflation, market volatility, and evolving goals over time. We help clients stress test their plans so they can spend their retirement enjoying life, not worrying about running out of money.
4. Withdrawing Too Much, Too Soon
You may have heard of the “4% rule,” which suggests withdrawing no more than 4% of your retirement savings each year to make your money last. But in reality, no one-size-fits-all rule can replace a personalized strategy.
How much you can safely withdraw depends on your total assets, other income sources, market performance, and tax considerations. Our advisors can help you map out a sustainable withdrawal plan aligned with your goals and lifestyle.
5. Overlooking Tax Strategy
Retirement doesn’t mean you stop paying taxes, it just changes how you pay them. If you have both taxable and tax-advantaged accounts (like IRAs, Roth IRAs, or 401(k)s), the order in which you draw from them matters.
A smart withdrawal sequence can help minimize taxes and keep more of your money working for you. This is where working with a financial advisor—alongside your CPA and attorney—can have a meaningful impact on your long-term plan.
6. Stretching Retirement Dollars to Support Others
We understand that many retirees want to help children or grandchildren with major expenses like college. But here's the tough truth: There are loans for education, but no loans for retirement.
We encourage clients to explore ways to support family without jeopardizing their personal financial security. That may mean creating a separate college funding plan or setting limits based on your retirement income projections. We're here to help you balance generosity with long-term stability.
Plan with Purpose
Retirement should be a time to enjoy the life you’ve worked so hard to build. But that doesn’t happen by accident; it requires thoughtful, proactive planning. At Deschutes, we bring decades of experience helping individuals and families make confident decisions about their future.
Have questions about your retirement plan?
We’d love to help. Reach out to schedule a conversation with one of our advisors.
Sources:
SSA.gov, 2025
Kiplinger.com, 2025
LongevityIllustrator.org, 2025
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2025 FMG Suite.