8 Mistakes That Can Upend Your Retirement

Pursuing your retirement dreams is challenging enough without making common, avoidable mistakes. With professional guidance from a Skyla Financial advisor and a free financial plan, it’s easier to spot potential pitfalls. Here are eight mistakes to try to avoid.

1. no strategy

Having no retirement strategy is one of the biggest mistakes. Without clear goals and a plan, it is difficult to know whether you are saving enough or if you are on track for the retirement you want.
A written plan that is created with a financial professional can help guide your decisions and provide confidence as you transition into retirement.¹

2. frequent trading

Chasing hot investments or reacting to market swings can erode long term returns. Research continues to show that most investors benefit more from staying invested, using a diversified strategy, and avoiding market timing decisions.¹
It may be helpful to revisit your allocation when your life changes, rather than responding to short term market movements.

3. not maximizing tax-deferred savings

Not participating in an employer plan like a 401(k) or 403(b) means missing potential tax benefits and possibly employer matching contributions.
For 2025, workers can contribute up to $23,500 to a 401(k). Workers age 50 and older can add a 7,500 dollar catch up contribution.² Taking full advantage of these limits can increase your future retirement income.

4. prioritizing college funding over retirement

Helping children with college costs is admirable, but reducing your retirement savings to do so can create long-term financial strain. Students have grants, scholarships, and loans available. Retirees do not. Balancing both goals is important to protect your financial future.

5. overlooking healthcare costs

Healthcare can become one of the largest expenses in retirement. According to Fidelity’s 2025 estimate, a 65 year old retiring this year may need $172,500 for healthcare expenses throughout retirement.³ This estimate does not include long term care.
Preparing early can help prevent health related expenses from affecting your retirement strategy.

6. not adjusting your investment approach well before retirement 

As retirement gets closer, staying too aggressive can expose your savings to the risk of a major market downturn at the wrong time.
This risk is called sequence of returns risk, and it can have a long term impact on your savings. Research shows that adjusting your allocation as you approach retirement may help reduce this exposure and create more stability for your income needs.¹

7. retiring with too much debt

 If too much debt is bad when you’re making money, it can be deadly when you’re living in retirement. Consider managing or reducing your debt level before you retire.

8. it's not only about money

Retirement success depends on more than finances. Your physical health, emotional wellbeing, relationships, and daily routines also have a major influence on your quality of life.
A 2024 Transamerica Institute survey found that retirees with strong social connections, regular activity, and a sense of purpose report higher satisfaction in retirement.⁴

NOT QUITE READY FOR RETIREMENT?

If you’re unsure where you stand or want help avoiding common retirement pitfalls, a Skyla Financial Advisor can help you review your plan and identify next steps. You can reach us at 704.375.0183 x 3085 to start the conversation and move forward with confidence.