10 Ways to Fail at Retirement

4. Not communicating with your spouse

If you are married or living with a partner, your retirement seriously affects two people, not just one, says Chris Farrell, an economics and personal finance commentator on public radio’s Marketplace and the author of Purpose and a Paycheck: Finding Meaning, Money, and Happiness in the Second Half of Life. 

It’s critical to have an ongoing conversation about retirement years before one or both of you retire, Farrell says, so each partner can paint a picture of what retirement means to them. “You want to understand what the other person is hoping to get from the experience,” he says.

5. Not readjusting your social life

It’s a lot easier to make friends when you’re surrounded by coworkers all day. Johnson-Zielonka says too many retirees make the mistake of assuming the relationships they’ve built with colleagues over the years will continue after they leave.

That’s rarely the case, she says. Without the common ground and regular contact of the workplace, work friendships “tend to fizzle out” without considerable effort on the retiree’s part.

“No one comes knocking on your door,” Johnson-Zielonka says. That means you need to put time and energy into retaining the relationship. Take the initiative in arranging get-togethers and offer to meet at or near your old workplace so it’s easy and convenient. You may suddenly have unlimited free time, but they don’t.

6. Not having a housing plan

When you were raising a family, where you lived probably had a lot to do with your kids — you wanted to be around good schools and places to play. In retirement, priorities shift: What can I afford on a fixed or reduced income? How good is the nearest hospital? Does my house and community accommodate changing needs as I age?

Few folks who move in retirement think this through fully, says David Conti, a retirement coach in Hampton Falls, New Hampshire.  “You need a holistic strategy for a long-term real estate plan,” he says. “Physical needs, neighborhood changes and financial realities may shift dramatically over five, 10 or even 25 years.”

Among the things to consider: Should I downsize and by how much? Do I want extra space to host the kids and grandkids? Should I get a single-story place in case stairs become a problem? Can I make renovations for safety and accessibility? If my spouse dies first, would I still want to live here? Are there long-term care options nearby?

7. Not strategizing for healthy aging

When we’re younger, we may take our body’s resilience for granted. That needs to change as we age, Conti says, but many retirees struggle to adjust long-held dietary habits or exercise routines. “Making small, sustainable changes can significantly impact overall health and quality of life in retirement,” he says.

For example, Conti was a distance runner for decades. But at age 64, with two knee surgeries behind him, he’s stopped running to lessen the impact on his knees. Instead, he regularly takes long walks and does weight training to support bone strength.

“The key is to keep moving and active,” he says. Low-impact exercises like stretching, yoga and Qigong are “excellent for maintaining flexibility and balance" but gentle on the joints and muscles, he says.

On the dietary front, Conti recommends being more mindful of portion sizes and opting for nutrient-dense foods. “Focus on incorporating more fruits, vegetables, whole grains and lean proteins into your meals while reducing processed foods and added sugars,” he says.

8. Not anticipating large medical bills

If you’re fortunate enough to live a long life, you likely will have to reckon with health care costs that increase with age. According to the National Council on Aging, 95 percent of people age 60 and over have at least one chronic health condition, and nearly 80 percent have two or more.

Relatively few folks plan for this, Hannon says. “I don’t think people understand how much medical bills can be,” she adds. “They think Medicare will cover it.”

Wrong. Medicare Part B, which covers outpatient care, typically pays 80 percent of the Medicare-approved cost of health care services; the patient pays the remaining 20 percent. Fidelity estimates that the average retiree who turned 65 in 2024 will have out-of-pocket medical costs of $165,000 over the rest of their life.

Hannon recommends dedicating a portion of your retirement savings to medical bills. You might also look into a health savings account (HSA), which can provide tax advantages as well as help you cover medical costs.

9. Not modifying your portfolio

Just as health needs change with age, so do financial needs. Financial planners generally recommend dialing back the risk level in your investments in retirement, when preserving assets may take precedence over growing them.  Still, Hannon says, many older adults, especially those without advisers, fail to do this and leave their portfolios alone.

That can spell trouble, particularly if you remain heavily invested in stocks and there’s an extended down market. “You no longer have 10 or 20 years for things to bounce back,” says Hannon.

She encourages retirees to move more of their assets into fixed-income investments such as U.S. Treasuries, corporate and municipal bonds, certificates of deposit (CDs) and high-yield savings accounts. These provide fixed returns, in the form of interest or dividends, for a set period. Less volatile than stocks, they may offer less upside potential, Hannon says, but they provide ballast in a well-diversified portfolio.

10. Not talking openly with family about money

Having a frank family discussion about finances can be uncomfortable, Conti says, but not having one can lead to confusion and stress.

Say you intend to leave a financial legacy to a favorite charity or charities rather than passing all your money on to your children and grandchildren. It’s better for all concerned if they know that ahead of time rather than finding out only after your death.

Conti suggests sitting down with your adult children for an initial money talk before you retire, not after. The first meeting doesn’t have to go into specifics, but it should at least open a window into your wishes. “Start small. Don’t go into details up front. Take baby steps and manage expectations little by little,” he says.

Future discussions can delve more deeply into how much your heirs stand to receive and bequests that reflect your values and interests. Explain why an organization or cause is important to you so your children clearly understand your posthumous support.

Conti also recommends including your kids in a meeting with your financial advisers, if you have any. It can be a big help for your children to know and be comfortable dealing with them.