8 Mistakes Even Prepared Retirees Make

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Something that no one can predict is what the market will be doing when they retire.

Will it be up?

Will it be down?

said Eric Mangold, founder ofArgosy Wealth Management.

Lets look at some common mistakes that even prepared individuals can make, which can jeopardize their financial security.

Below are thetop mistakes even prepared retirees make, according to experts.

However, the reality is something different.

Most retirees make the mistake of ignoring the potential need for assisted or nursing home care.

Michael Boggiano, managing partner atWealthcare Financial, observed the same.

As a result, the retirement savings may not stretch as far as they think, said Yen.

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Another mistake is underestimating life expectancy.

Advances in healthcare have extended life expectancy, as many people live 30-plus years after retirement, Yen noted.

Its unfortunate to talk about but a lot of retirees dont account for their cognitive decline.

Relying too heavily on social security is another grave error.

Failing to budget for these expenses is a significant mistake, according to Yen.

She said that can deplete savings faster than expected, especially if the market underperforms.

Another silly mistake is ignoring taxes in retirement.

People typically forget that traditional 401(k)s and IRAs are taxable, Yen said.

The taxes can bite off a significant chunk out of their retirement income.

As market conditions change, a fixed withdrawal rate can deplete savings.