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Heres a look at the misconceptions you should probably avoid and thebest ways to avoid them.
Many believe theyll spend less in retirement, but costs often remain unchanged only the sources of income dwindle.
While worrying is probably unnecessary, turning out is always imprudent and often costly especially for retirees.
A major misconception is that insurance policies are set it and forget it, said Boersma.
In reality, periodic reviews and adjustments are critical as needs, risks and product features change over time.
What worked at age 65 may be irrelevant or even counterproductive at 85.
Constant monitoring and a willingness to make changes is key.
Healthcare costs are frequently underestimated in retirement planning, said Boersma.
Many people also have unrealisticexpectations about Medicare, which further drives the tendency to underestimate healthcare costs.
Medicare Part A is usually free but can cost up to $505 per month.
It comes with a $1,632 deductible, and extended inpatient stays arent covered.
Even with Medicare, out-of-pocket costs can top $300,000 for a retired couple, said Boersma.
In reality, its merely supposed to complement it.
Like all the other pitfalls, the best strategy for avoiding a bad outcome will vary by retiree.
Consider a client who believed they could live off of Social Security and their pension alone, said Gosselin.
We discovered significant holes in their plan, particularly in the areas of living expenses and healthcare.
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