Planning for retirement in your 50s or 60s can feel like navigating a maze—one wrong turn can set you back years. But it’s also the most powerful time to take control of your financial future. With retirement around the corner, avoiding common mistakes is just as important as saving money.
In this guide, we’ll break down the biggest retirement mistakes over 50, how to avoid them, and what you can do right now to protect your savings, health, and peace of mind.
Mistake #1: Underestimating How Long You’ll Live
Many people plan for 15–20 years in retirement. But today, a healthy 60-year-old has a good chance of living into their 90s.
Why this matters:
- Outliving your savings is a real risk.
- Healthcare costs and inflation add up over time.
What to do:
- Plan for at least 25–30 years of retirement income.
- Consider delaying Social Security to increase lifetime benefits.
- Work part-time or freelance in early retirement to stretch your savings.
Mistake #2: Claiming Social Security Too Early
You can start collecting Social Security at age 62—but doing so permanently reduces your monthly benefit. Every year you delay (up to age 70) increases your payment.
What to do:
- If possible, delay until your full retirement age (66–67) or later.
- Use other savings to bridge the gap and maximize your future benefits.
- Use the SSA calculator to compare scenarios: Social Security Estimator
Mistake #3: Not Adjusting Your Spending Habits
Your spending patterns in your 50s may not match your retirement reality. If you don’t adjust now, you may struggle later.
What to do:
- Start living on your projected retirement budget before you retire.
- Eliminate or reduce unnecessary expenses (subscriptions, large housing costs, etc.).
- Pay off high-interest debt like credit cards.
Mistake #4: Forgetting About Healthcare Costs
Healthcare is one of the biggest—and most underestimated—expenses in retirement. Medicare doesn’t cover everything, and out-of-pocket costs can be steep.
What to do:
- Open or fund a Health Savings Account (HSA) if eligible.
- Learn about Medicare Parts A, B, D, and supplemental plans.
- Plan for long-term care insurance in your early 60s, before premiums spike.
Mistake #5: Being Too Conservative with Investments
It’s tempting to shift everything into low-risk investments as you near retirement, but being too conservative can make your money grow too slowly—or not at all.
What to do:
- Balance safety and growth with a diversified portfolio.
- Reassess your risk tolerance with a financial advisor.
- Don’t forget: retirement can last 30+ years—you still need long-term growth.
Mistake #6: Not Having a Tax Strategy
Without a solid tax plan, you could end up paying more than necessary during retirement—especially on Social Security and 401(k)/IRA withdrawals.
What to do:
- Know how retirement income is taxed (pensions, IRAs, Social Security).
- Consider Roth conversions in your 50s or early 60s.
- Work with a CPA or retirement planner to create a tax-efficient withdrawal strategy.
Mistake #7: Ignoring Estate Planning
Estate planning isn’t just for the wealthy. Everyone needs a will, medical directives, and clear beneficiaries to protect loved ones and avoid probate headaches.
What to do:
- Update your will, power of attorney, and healthcare proxy.
- Double-check IRA, 401(k), and insurance beneficiaries.
- Consider setting up a trust if needed.
Mistake #8: Putting Off Planning Altogether
The biggest mistake? Doing nothing and hoping things work out. The earlier you start—even in your 50s or 60s—the better your outcomes.
What to do:
- Schedule a meeting with a fee-only financial advisor.
- Use online retirement calculators to set realistic goals.
- Involve your spouse or partner in the process.
FAQs
Is it too late to start retirement planning at 55 or 60?
No, it’s not too late. While earlier is better, you can make significant progress by maximizing catch-up contributions, cutting expenses, and delaying retirement if needed.
What are catch-up contributions?
If you’re 50 or older, the IRS allows you to contribute extra to retirement accounts:
- $7,500 extra per year for 401(k)s (on top of $23,000 limit in 2025)
- $1,000 extra per year for IRAs
How much should I have saved by age 60?
There’s no one-size-fits-all answer, but a common rule of thumb is 6–8 times your annual salary saved by age 60. The key is to know your future expenses and plan around them.
Don’t Let Regret Be Part of Your Retirement
Whether you’re behind on savings or just starting to think seriously about retirement, the worst thing you can do is ignore the signs. Start now. Adjust your habits, ask for help, and build a plan that works for your future.
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Want help building your own custom retirement checklist? Talk to a certified financial planner today—and make your next chapter your best one yet.