Retirement Traps to Avoid

No matter where you’re starting from, your path to retirement may include unexpected twists, turns, and slides. Preparing for what lies ahead can make the journey a bit more enjoyable. Here are some of the twists you might encounter.

Market Volatility Is Inevitable.

Changing interest rates, global developments, even investor psychology can cause markets to move higher or lower. In uncertain times, it can be tempting to react out of fear. But a balanced portfolio that reflects your goals, risk tolerance, and time horizon can help you weather market volatility while still taking advantage of opportunities.¹

Inflation Is An Upward Movement In The Average Level Of Prices Over Time.

Over time, inflation can act like a thief, stealing purchasing power from your retirement savings. But in the same way that you might protect your possessions from robbers, there are wise financial strategies that can help prevent financial losses due to inflation.

Health Care Costs Could Be One Of The Biggest Expenses You Will Face In Retirement

A 65-year-old who retired in 2024 can expect to spend an estimated $165,000 in healthcare costs throughout the course of their retirement. While you may have paid for Medicare Part A during your working years, you may want to prepare for the cost of other supplemental health plans, such as Medicare Parts B and D. Also, remember to plan for extended care. Someone turning age 65 today has almost a 70% chance of needing some type of extended care and support in their remaining lifetime.^2,3

Your Retirement Years May Also Be A Longer Season Of Your Life Than You Anticipate

The average person’s life expectancy has risen by 2.5 years over the last century.⁴ Living longer can require more retirement savings. For some, it may mean changing their stance on working during retirement. 75% of today’s workers expect to keep working after they retire. However, only 30% of retirees actually remain on the job.⁵

Perhaps The Biggest Trap To Avoid On Your Journey Is That Of Unrealistic Expectations

Retirement, like the rest of your life, will be full of changes, challenges and opportunities. Preparing yourself mentally and financially can help pave a clear path so you can enjoy all the adventures that lie ahead.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Kiplinger.com, January 12, 2025
Genworth.com 2025
OurWorldInData.com, 2025
EBRI.org, 2024

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Download PDF

6 Meridian is a group comprised of investment professionals registered with Hightower
Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also
be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are
offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities,
LLC.
This is not an offer to buy or sell securities, nor should anything contained herein be construed
as a recommendation or advice of any kind. Consult with an appropriately credentialed
professional before making any financial, investment, tax or legal decision. No investment
process is free of risk, and there is no guarantee that any investment process or investment
opportunities will be profitable or suitable for all investors. Past performance is neither indicative
nor a guarantee of future results. You cannot invest directly in an index.
These materials were created for informational purposes only; the opinions and positions stated
are those of the author(s) and are not necessarily the official opinion or position of Hightower
Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only
and based on generic assumptions. All data or other information referenced is from sources
believed to be reliable but not independently verified. Information provided is as of the date
referenced and is subject to change without notice. Hightower assumes no liability for any action
made or taken in reliance on or relating in any way to this information. Hightower makes no
representations or warranties, express or implied, as to the accuracy or completeness of the
information, for statements or errors or omissions, or results obtained from the use of this
information. References to any person, organization, or the inclusion of external hyperlinks does
not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such
person, organization or linked website or the information, products or services contained
therein.
Click here for definitions of and disclosures specific to commonly used terms.