I'm a Financial Advisor: 5 Avoidance Moves That Lead To Major Money Loss for Retirees
Retirement isn't supposed to be a financial obstacle course. But for many retirees, it becomes one — not because they didn't save enough, but because they're avoiding the very decisions that could protect what they've already built. Small postponements and wishful thinking can quietly spiral into serious money problems.
Financial advisors see it happen again and again: retirees who put off critical decisions until the damage is done. Here are five avoidance moves that consistently undermine retirement security.
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1. Winging Your Budget
Without a realistic retirement plan, it's easy to spend more than your savings can actually support.
“What makes this especially difficult is that the conversation goes beyond just the numbers,” explained Linda Grizely, financial wellness and behavioral finance speaker. “It can feel like a judgment about lifestyle, independence and past financial choices.”
Most retirees keep doing what feels comfortable and hope it works out. Instead, Grizely recommended mapping your cash flow, spending, income, investments, taxes and account withdrawal strategy. Revisit this at least annually and whenever spending, markets, taxes, health or life circumstances shift.
2. Skipping Tax Planning
Most assume their tax bills decrease once they stop working, but failing to plan ahead could actually lead to higher taxes.
“Later in retirement, they could be in tax brackets that they haven't seen in many years or even in higher tax brackets than when they were working,” said Chad Gammon, certified financial planner (CFP) and the owner of Custom Fit Financial.
To avoid this mistake, Gammon recommended looking at future taxable income and including Social Security and required minimum distributions (RMDs) in planning.
“During low-income years, they should consider filling up lower tax brackets with Roth conversions or withdrawals rather than leaving the space unused,” he added.
3. Delaying Long-Term Care Planning
Long-term care can be one of the biggest retirement expenses, but many retirees put off planning for it until they actually need it. The 2025 Milliman Long-Term Care Index calculated that, on average, 65-year-olds should set aside $135,000 for future long-term care needs.
As Dale Krause, CEO of Krause Financial and Krause Agency, put it, “Rather than asking, 'Will I need care?' retirees should ask: 'If I need care, where will the money come from?’"
He advised looking into long-term care insurance and other funding options long before you need it — when you have more choices and better rates.
4. Ignoring High-Interest Credit Card Debt
High-interest credit card debt can strain fixed incomes and drain savings.
“People put off dealing with it because it can require some effort in researching and choosing a solution to eliminate the debt, and because it usually takes some changes in life, such as paying attention to a budget, some belt-tightening or other,” said Austin Kilgore, analyst with the Achieve Center for Consumer Insights.
A solid budget and debt repayment strategy are essential. Kilgore recommended prioritizing high-interest balances first and exploring debt relief options if payments become unmanageable.
5. Failing To Consider Investment Liquidity
Not all retirement savings are easily accessible. Some assets, such as real estate, are more difficult to sell quickly. This could leave retirees short on cash when there’s an emergency.
Daniel Gleich, former CEO of Madison Trust, advised assessing your portfolio's liquidity to determine whether you need to reallocate assets, adjust your budget or even postpone retirement.
The Bottom Line
The common thread here isn't ignorance — it's inaction. Every one of these five moves costs retirees more the longer they wait to address them. The decisions you make (or avoid making) today determine whether retirement is the peace you've earned or the stress you've inherited. Start with one: Pick the avoidance move that feels most relevant to your situation and tackle it now.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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