An estimated 4 million people are expected to retire this year.
These retirees will be navigating retirement at a time when many are unprepared and when the retirement landscape is changing rapidly.
One of the best things to do is look at what the previous generation did and what mistakes they made, and learn what not to do.
Angela Dorsey, CFP®, MBA, is a Founder and Financial Planner at Dorsey Wealth Management. She specializes in financial planning for retirement and shared the three top retirement mistakes she sees retirees make, both during and before retirement.
Moving to a Different State
One of the worst mistakes I see retirees make is moving to a different state to lower their expenses. For example, moving from California to another state, you may find that the difference in your overall expenses may not be as large as you think. Real estate may be cheaper than in California, but other costs, such as utilities, need to be considered.
Not Creating a Realistic Retirement Budget
It’s important to create a realistic budget. In retirement, it can be easy to overspend without realizing it. Overspending, even for a short period, can shave years off the longevity of your assets. The budget doesn’t need to be perfect, but it should be something you can honestly stick to.
Try tracking your expenses for a couple of months to get an idea of what you spend currently. Once you have all your costs outlined, consider if there are areas where you can cut back or items that will increase in retirement.
Don’t forget to calculate your expected medical costs. Medicare costs are rising in 2026.
The annual premium for Part B coverage, which provides outpatient hospital services, some home health services, durable medical equipment, and certain other services not covered by Medicare Part A, is increasing. The 2026 premium for Part B will rise to $202.90, up $17.90 from the current $185.00.
Taking Social Security Too Early
If you don’t need the money earlier, waiting until you are 70 is a great way to increase your payments. While eligibility to collect Social Security starts at age 62, your benefit will increase by about 8% for each year you wait until age 70. After age 70, there is no additional benefit to waiting.
