Test Summary
- Saber Ali
- August 16, 2025
Retirement planning is rarely perfect. Life throws curveballs—health issues, market downturns, career changes—and even the most diligent savers can stumble along the way. If you’ve made financial missteps or feel unprepared as you approach retirement, you’re not alone.
But here’s the good news: it’s not too late to make course corrections.
In 2025, there are still actionable strategies that can help you recover from common retirement mistakes. Whether you’re already retired or just a few years out, these planning moves can help secure your financial future and restore peace of mind.
Let’s explore three of the most common retirement mistakes—and how you can still fix them this year.
Many retirees assume that their expenses will drop significantly in retirement. But the reality is that costs often remain steady—or even increase due to rising healthcare expenses, inflation, or lifestyle choices like travel and hobbies.
If your budget doesn’t reflect realistic monthly income needs, you may be drawing down your savings too quickly.
Recalculate your retirement income gap.
Start by identifying guaranteed sources like Social Security and pensions. Then, project your monthly expenses—include healthcare premiums, property taxes, and inflation-adjusted spending.
Next, evaluate income-producing assets like IRAs, 401(k)s, or annuities to determine if they fill the gap. If not, consider:
Tip: You can still take advantage of favorable annuity rates in 2025 and lock in income now or in the future.
Too many retirees take Required Minimum Distributions (RMDs) or withdrawals without thinking about tax brackets, Medicare surcharges, or future liability. And with the sunset of the Tax Cuts and Jobs Act looming in 2026, tax rates could rise.
Failing to plan for taxes can shrink your retirement income—and increase the chance of outliving your savings.
Make strategic tax moves this year.
Here are three you can still use:
Planning note: Work with a tax advisor to coordinate conversions and charitable giving while staying under key Medicare thresholds.
Some retirees avoid annuities or long-term care planning because of outdated assumptions—like “annuities are bad” or “I’ll never need care.”
This leaves them overexposed to market downturns and vulnerable to rising medical costs. Longevity risk and healthcare inflation are two of the biggest threats to retirement security—and many people ignore them until it’s too late.
Reevaluate your protection tools.
Modern annuities offer a wide range of benefits beyond just income:
And most importantly: These solutions can be tailored. You don’t need to put all your assets into annuities or protection products—just enough to cover essential expenses or future care.
The choices you make now can determine how confident you feel 5, 10, or 20 years into retirement. Fortunately, 2025 still offers an opportunity to adjust, especially before scheduled tax law changes in 2026.
| Mistake | Fix in 2025 |
|---|---|
| Underestimating income needs | Review spending; fill gaps with annuities or other income |
| Ignoring tax strategies | Use Roth conversions, QCDs, and income timing |
| Avoiding protection tools | Explore FIAs, LTC riders, or MYGAs for stability |
It’s easy to delay retirement planning fixes, especially when you’re overwhelmed or unsure where to start. But 2025 gives you a window of opportunity to pivot, protect, and rebuild confidence in your plan.
The longer you wait, the fewer options you may have. But take action now—and you may be surprised how much better your future can look.
📞 Schedule a no-obligation conversation with a retirement income specialist at SafeMoney.com.
🧑💼 Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.
