Retirees Confront Common Financial Mistakes and Key Planning Decisions

A recent study by the Transamerica Center for Retirement Studies found that nearly half of retirees worry about outliving their savings, highlighting widespread financial stress in retirement. Common pitfalls include underestimating expenses such as healthcare, home maintenance and travel, falling for scams, neglecting inflation, and failing to plan for long‑term care or estate matters. Fidelity estimates a typical 65‑year‑old couple may spend around $315,000 on healthcare alone.

Financial advisers also note three especially tricky decisions for new retirees: selecting an appropriate withdrawal rate, deciding whether to purchase long‑term‑care insurance, and maximizing non‑portfolio income sources such as Social Security, pensions or annuities. While a 4% withdrawal rate is often cited as safe, recent research suggests rates may vary between 3.3% and 4% depending on market conditions and life expectancy. The long‑term‑care insurance market remains challenged, though higher interest rates have improved its economics.