(Image credit: Getty Images)Remember when you were a teenager, first learning how to drive?Your parents probably talked to you about staying safe, minimizing distractions and watching out for hazards on the road. And you probably listened. Kind of.But you really just wanted to grab the keys — and your independence.Subscribe to Kiplinger’s Personal FinanceBe a smarter, better informed investor.
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Sign up for Kiplinger’s Free E-NewslettersProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.Profit and prosper with the best of expert advice – straight to your e-mail.Sometimes I think that’s how soon-to-be retirees must feel when they hear and read retirement advice. They’re more than ready (mentally, anyway) to just hit the gas and drive happily into the sunset. But they still need to avoid distractions and to keep an eye out for unexpected obstacles, blind spots and dangerous curves.If you want to safely navigate your way to and through retirement, it’s imperative to be as prepared as possible for what lies ahead. A good place to start is to be aware of and plan for these common retirement risks.Many retirees count on Social Security as an important income source in retirement. But many people don’t give much thought to when they’ll apply for their monthly benefits or how their filing decision will impact the amount they’ll receive.You can file for your benefits any time from the age of 62 to 70. But the longer you wait, the more your monthly benefit will be. And if you file before your full retirement age (which is based on your birth year), your benefit will be permanently reduced.Unfortunately, there’s no way of knowing what’s right for you without first reviewing your current financial picture and other aspects of your life. Your timing may be based on several factors, including your current health and family health history, whether you plan to keep working at least part time, how much you will need the money early in retirement vs later on and, if you’re married, how much you or your surviving spouse might need to live on after the other passes away.The Social Security Administration (SSA) website offers planning tools that can help you become more informed. If you haven’t already, you should contact a financial adviser who is a retirement specialist to determine what’s best for your needs.Risk No 2: Underestimating medical costsAccording to Fidelity Investments’ most recent Retiree Health Care Cost Estimate, a 65-year-old retiring in 2024 can expect to spend an average of $165,000 on health care and medical expenses throughout retirement. That’s more than twice what the average American estimates their costs will be.How can you avoid being blindsided by medical costs? A good first step is to educate yourself about what Medicare will and won’t pay for as you age and how different plan options work. (This is something
Gio. Gen 9th, 2025
