5 Retirement Assumptions That Could Steer You Off Course 

Chances are you’ve already made assumptions about what your retirement will look like—whether it’s how often you plan to golf, or how much you’ll spoil the grandkids. While these assumptions give your retirement goals meaning, there are others that could be working against you. Here are five common assumptions to avoid.  

1. You won’t live until you’re 90.

So many folks assume they won’t live to see a 90^th birthday and plan for retirement accordingly. Imagine their surprise when they actually live that long. It’s estimated a 60-year-old woman who does not smoke and is in great health has a 50% chance of living to 90. For 60-year-old men with the same profile, the chance is 42%. The lesson here? Don’t sell yourself short on longevity.

2. You’ll stay healthy.

We sure hope you’ll be healthy as a horse for a lifetime. Unfortunately, experience has shown that’s not necessarily a realistic expectation. Among adults age 65 or older, almost 93% have at least one chronic condition, and 79% have two or more. Over time, the cost of care adds up. You don’t want surprise expenses taking away from the things you’ve been looking forward to. 
 
What’s more, adults over age 65 have a 70% chance of needing long-term care some time during the remainder of their life. But with proper planning, long-term care doesn’t have to spell financial ruin. 

3. Market performance will stay the same.

If there’s any guarantee about market performance, it’s that it will likely never stay the same. It may not feel that way, though, given the sustained period of high performance the stock market has experienced over the last 15 years. In fact, this period of above average returns has been one of the strongest runs in history.  

 
While no one knows what the next 15 years will hold, it’s important to be prepared for whatever may come. For those in our near retirement, that means making adjustments to your portfolio to minimize risk and shift into more predictable investments.  

4. You can go back to work if you want.

Technically anything is possible. But when it comes to returning to the workforce, there are some often overlooked factors that could affect whether it will truly be worthwhile. First, if you started collecting Social Security benefits before your full retirement age, you could see a reduction in benefits. For every $2 you make above $23,400 for 2025, the Social Security Administration will deduct $1 of your benefits.  
 
Then there’s the issue of your Medicare premiums. If going back to work causes your income to increase too much, it may trigger your Medicare Part B and Part D premiums to increase due to the Income-Related Monthly Adjustment Amount (IRMAA) surcharge.  Add in a potential change in tax bracket, and you can see why it pays to run the numbers before you start applying for jobs.

5. You’ll get an inheritance.

Basing your retirement plans on a potential inheritance windfall essentially leaves your golden years to chance.  That’s because nothing is guaranteed until the wealth actually transfers; and unfortunately, many retirees are finding the inheritance they receive is not what they’d assumed. The Federal Reserve found the average American household inherits $46,200, despite expecting $72,200. Why the discrepancy? Not only are people living longer, but end-of-life-care may eat into what they’re able to leave behind. That’s why it’s best to wait until you have the money in hand before factoring it into your retirement savings calculations.

When it comes to planning for retirement, our goal is that the only financial surprises you encounter are the good kind. That’s why our Roadmap for Retirement includes taxes, fees, market risk and long-term care. We take an eyes-wide open approach—so you can protect your life savings. 

Are there any retirement assumptions keeping you up at night? We’re here to help. 

Disclaimer: Numbers are for illustrative purposes only. Consult a professional for personalized advice.