Retirement

Retirement Traps to Avoid

A 1960s-style sign sits atop a chain of boardgame-style tiles which snake down the page. Geometric styled sunbursts and stars decorate the background. The sign reads: Retirement Traps to Avoid. Below the sign are words that read: 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.

The chain of boardgame-style tiles continues downward. On the left side of the page reads a sign: Market Volatility. Under this is the following text: 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.

The tiles continue on, some with boardgame-like instructions that say: Advance 3 Squares, or Lose A Turn. Another retro sign sits on the right side and reads, Inflation. Words between the sign and the tiles read: 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.

The game tiles continue and curve towards the bottom of the image. A sign on the left reads: Healthcare Costs. Words between the sign and the tiles read: 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.

The tiles curve around another retro sign that reads, Lifespan. Below the sign are words that read: Your retirement years may be a longer season of your life than you anticipate. The average person’s life expectancy has risen by 25 years over the last century. 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.

The multi-colored tiles continue to march down towards the end of the boardgame. A retro sign with stylized palm trees reads: Expectations. A small sign that reads, “Vacancy” is just below this word. Between the sign and the tiles are words that read: 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.

The game tiles end at a large sign at the center-bottom of the image. It is in the same retro style as the others and reads: You Made it! Welcome to Retirement. The sign has stylized beams of light coming out of the back and is surrounded by smaller illustrations of twinkling stars. A border of overlapping diamonds ends the bottom of the image.

Have A Question About This Topic?

What Will You Do With Your Bonus or Windfall?

This article examines one's options when receiving a work bonus or other financial windfalls.

The Financial Literacy Crisis

Many Americans are operating their personal finances with only the barest minimum of knowledge.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (Member FINRA & SIPC). Insurance products are offered through LPL or its licensed affiliates. Kennebec Saving Bank and Kennebec Wealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Kennebec Wealth Management, and may also be employees of Kennebec Saving Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Kennebec Saving Bank or Kennebec Wealth Management. Securities and insurance offered through LPL or its affiliates are:

Retirement Traps to Avoid

Have A Question About This Topic?

Related Content

What Will You Do With Your Bonus or Windfall?

Consider Keeping Your Life Insurance When You Retire

The Financial Literacy Crisis

Not FDIC Insured		No Bank Guarantee		May Lose Value
Not a Deposit		Not Insured by any Federal Government Agency