The 7 Biggest Threats to Your Retirement—and How to Prepare for Them
Retirement should be a season of freedom. A chance to slow down, spend time with the people you love, and finally enjoy what you’ve worked hard for. But the path to a retirement you can count on isn’t always smooth sailing.
Retirees in 2025 face risks that other generations didn’t have to think about. Markets are more unpredictable, healthcare costs are higher, and government policy feels like it’s always shifting. If you don’t have a solid plan, it’s like walking into retirement blindfolded.
The best way to move forward is with a clear plan that covers all your bases, including potential issues. Here are the 7 biggest threats to your retirement and how you can prepare for them. 👇
1. Believing Conventional Financial Wisdom
Rules of thumb like the “4% withdrawal rule” or the idea that you’ll spend less in retirement sound simple, but they just don’t work for everyone. Retirement is personal. Following generic advice without tailoring it to your situation can put you on the wrong track from the start.
Find an advisor who can analyze your situation and desires to help build a plan that will work for your lifestyle and long-term goals.
2. The Fiscal Health of the United States
We can’t control the national debt, Social Security’s future, or changes in tax law. But those big-picture issues do matter. What happens in Washington has a direct effect on your retirement income and the benefits you can count on. It’s going to affect you whether you plan for it or not, so make sure you’re prepared.
A good financial advisor will continue to make changes along the way when your portfolio starts to see effects.
3. Not Maximizing Retirement Income
Retirement isn’t just about how much you have saved; it’s about how you use it. Drawing from the right accounts at the right time can stretch your income further and reduce the taxes you pay along the way. Without a strategy, you may be leaving more money behind than you realize.
4. Unplanned Healthcare Expenses
One of the most overlooked risks in retirement is healthcare. Medicare only covers so much, and long-term care often isn’t included. A sudden diagnosis or extended care need can drain savings quickly. Planning ahead gives you options and peace of mind.
You don’t want to be left in the dark if something were to happen. Make sure your advisor is helping you plan for healthcare costs down the road.
5. Large Market Declines
Market downturns are part of life, but they affect you differently in retirement. When you’re withdrawing money to live on, a poorly timed drop in the market can cause permanent damage to your nest egg. When you don’t have the luxury of decades to recover, protecting your income from volatility is essential to staying on course.
6. Poor Estate Transfer Design
Retirement planning isn’t only about you. You also need to consider what happens after you’re gone. Without proper estate planning, your loved ones could face unnecessary taxes, delays, or disputes. Clear wills, trusts, and beneficiary designations keep your wealth moving in the direction you intend.
Look for an advisor who can help you design an estate plan and ensure your family won’t have to worry.
7. No Clear Retirement Plan
The biggest threat of all? Not having a plan that ties everything together. A well-designed plan gives you a compass: a way to navigate market swings, healthcare costs, tax changes, and more. Without it, you’re left guessing, and guessing isn’t a strategy.
Find Your Direction Forward
The good news is you don’t have to face these threats alone. With the right guidance, you can prepare for them and move into retirement with clarity and confidence.
That’s why Jere Smith, CFP®, CF2, is hosting a free in-person class on The New Reality in Our Retirement: 7 Threats to Retirement. In this session, he’ll walk you through these risks in-depth and share practical ways to protect what you’ve worked so hard to build.
📍 Reserve your seat today and take the first step toward a retirement that feels steady, secure, and headed in the right direction.
