The 5 Retirement Planning Mistakes Smart Couples Still Make (And How to Avoid Them)

Even smart, successful couples can make retirement planning mistakes — especially when life is busy and retirement still feels like it is years away. If you’re over 50, avoiding these missteps can make a big difference in your retirement plan’s trajectory and your long-term peace of mind. Let’s take a look at some retirement planning mistakes to avoid:

Mistake #1: Thinking a Big Nest Egg Is All You Need

So many people are focused on the number. You’ve saved diligently — maybe you’ve crossed the $1 million mark. Does that mean you’re fully prepared? Maybe. Maybe not.

Retirement is about income, not just assets.

A transition into the retirement years requires different thinking and different math. Retirement income planning is a different world from saving and accumulating assets. Without a strategy for converting your savings into a tax-smart retirement paycheck, you may be paying more taxes than necessary or risk withdrawing too much too soon.

Mistake #2: Underestimating the Impact of Taxes

Taxes could be the forever frontier of retirement planning. With a complex tax code that seems to be ever-changing, you should have a strategy for minimizing your lifetime tax bill. Many retirees don’t realize how much taxes can eat into their retirement income, especially if most of their savings are in traditional IRAs or 401(k)s.

In South Carolina, retirement income is subject to additional deductions from state income taxes. In North Carolina, it’s fully taxed. However, NC does have a lower flat tax system in place. South Carolina is considering implementing their own flat tax system. We shall see if SC lawmakers can make it happen.

No matter where you live, tax planning is a smart thing to do. Retirees should consider strategic Roth conversions, qualified charitable distributions (QCDs), and timing their withdrawals to help lower their tax bill.

Mistake #3: Ignoring Healthcare and Long-Term Care Costs

Medicare doesn’t cover everything. Overall, Medicare Parts A and B, combined with a supplemental plan, can offer medical coverage in your retirement years. However, if you or your spouse requires long-term care in the future, the costs can be substantial. Medicare does not cover long-term care expenses.

Care planning is a crucial component of any retirement planning conversation. Even if you opt to self-insure, it’s important to discuss your preliminary thoughts on care for yourself and your spouse. In many cases, acute illness can happen quickly, which makes it very difficult to plan for care. You simply have to move and react in the moment.

Despite the cost of care, you should still have a plan in place. A good financial advisor will know the importance of this topic. If you want to research the cost of care, Genworth provides a great resource here.

Planning for healthcare expenses in retirement— whether through savings, long-term care insurance, or hybrid life insurance policies — can help protect your retirement lifestyle and reduce the burden on your family.

Mistake #4: Delaying Social Security Without a Plan

Waiting to take Social Security can be smart — but only if you have a clear plan for how to bridge the income gap in the meantime. Social Security income is one of those important topics that should be covered when building your your retirement income plan. Deciding when to file for Social Security is a big decision—but you only get to make it once.

For many Carolina couples, the decision about when and how to claim benefits may add or subtract tens of thousands of dollars from their lifetime income. This is why we believe that couples should think through their options and coordinate their overall claiming strategy. Social security can not only impact household income, you must also consider tax impacts and the surviving spouse benefit if you are married.

Mistake #5: Going It Alone

You’ve been successful on your own, but retirement planning requires a different mindset. Retirement planning is not an event—it’s a process. Remember, retirement is not just about building your assets; it’s about protecting them and creating income that lasts.

Inflation and Taxes are always going to be part of the equation. Retirement is a new season of life that can be full of new adventures and life goals. A seasoned financial advisor can help you coordinate investments, taxes, insurance, and estate planning so that you can make the most of your retirement years without anxiety and worry.

Avoid the Pitfalls — Plan with Confidence

Retirement is a life transition. If you want to avoid common mistakes and build a plan that reflects your unique situation, we’re here to help. You’ve worked hard. Let’s Build and Protect Your Wealth Together.

We work with high-income, values-driven couples across the Carolinas to create retirement plans that are clear, flexible, and built to last.

Let’s talk. 

Investment advisory and financial planning services offered through Advisory Alpha, LLC, a SEC Registered Investment Advisor. Insurance, Consulting and Education services offered through Vertex Capital Advisors. Vertex Capital Advisors is a separate and unaffiliated entity from Advisory Alpha, LLC. All written content on this site is for information purposes only. Opinions expressed herein are solely those of Michael H. Baker, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. This website may provide links to others for the convenience of our users. Michael H. Baker has no control over the accuracy or content of these other websites. Please note: When you access a link to a third-party website you assume total responsibility for your use of linked website. Links and references to other websites and third-party content providers are offered for your convenience. We do not necessarily prepare, monitor, review or update the information provided by third parties. We make no representation or warranty with respect to the completeness, timeliness, suitability, or reliability of the referenced content.