{"id":348186,"date":"2026-03-15T23:21:09","date_gmt":"2026-03-15T23:21:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/348186\/"},"modified":"2026-03-15T23:21:09","modified_gmt":"2026-03-15T23:21:09","slug":"costs-new-retirees-often-underestimate","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/348186\/","title":{"rendered":"Costs New Retirees Often Underestimate"},"content":{"rendered":"

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Retiring between ages 62 and 67 is a no-brainer for many people. You\u2019ve saved and planned, and you\u2019re finally ready to enjoy the freedom you worked decades to earn.<\/p>\n

However, this phase can come with blind spots that many new retirees<\/a> don\u2019t see until they\u2019re in it. GOBankingRates spoke to William Connor from SAX Wealth Advisors<\/a> about what catches people off guard in those critical first years of retirement<\/a>.<\/p>\n

The Transition Period<\/p>\n

Many people imagine retirement as an instant lifestyle change \u2014 from working life to permanent leisure. In reality, it takes time to figure out what you truly want your days to look like. \u201cRetirement is a big transition for most people, and it can be hard to truly understand what you want until you are actually retired,\u201d he said.<\/p>\n

Activities that sound appealing may become boring as years go by. Connor recommended treating your first year or two as a trial period to figure out what you really desire.<\/p>\n

Social Security Timing<\/p>\n

When to claim Social Security<\/a> is one of the most debated retirement decisions. Delaying your benefits is often worth it. As Connor put it, \u201cIt pays to wait; you\u2019ll earn about an extra 8% annually in your benefit by delaying the start. This extra income can potentially result in greater retirement security.\u201d<\/p>\n

However, he stressed this decision needs a holistic evaluation, including your health outlook and whether you need to leave money for heirs. \u201cSocial Security terminates at death, while retirement accounts and other assets can be passed on,\u201d he said.<\/p>\n

Healthcare Costs<\/p>\n

Healthcare is one of the most underestimated retirement expenses<\/a>, especially for those retiring before age 65. <\/p>\n

\u201cThe cost of health insurance can increase dramatically when retirees no longer have employer support,\u201d Connor said. \u201cIt\u2019s critical that health considerations be taken into account prior to retirement, evaluating the out-of-pocket cost for required medications and doctor visits.\u201d<\/p>\n

Retirement Account Spending<\/p>\n

How you access your money matters just as much as how much you\u2019ve saved. Spending directly from retirement accounts<\/a> is something many new retirees underestimate.<\/p>\n

Connor recommended setting up a monthly paycheck system, transferring a set amount from your retirement and investment accounts into your checking account. \u201cThis helps to create discipline around retirement spending and can help to avoid overspending, especially in the early retirement years which can create problems later in life,\u201d he said.<\/p>\n

Activity and Connections<\/p>\n

Many retirees focus on financial readiness but overlook the importance of staying active. \u201cActivity is good for mental and physical health,\u201d Connor said. Find exercise you actually enjoy and do it regularly. <\/p>\n

But physical activity is only part of the equation. \u201cMaintain social connections; research has shown that loneliness can negatively impact your health and well-being,\u201d he noted. \u201cThis can range from volunteering, helping with family, or even going back to school.\u201d<\/p>\n

Flexibility<\/p>\n

Life rarely unfolds exactly as planned. That\u2019s why Connor recommended \u201cmaintaining financial and mental flexibility to adjust to the inevitable unplanned events.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"LordHenriVoton \/ iStock.com Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews and…\n","protected":false},"author":2,"featured_media":125946,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,6271,61,60,174,175,6272,1611],"class_list":["post-348186","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-gobankingrates","tag-ie","tag-ireland","tag-personal-finance","tag-personalfinance","tag-planning","tag-retirement"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/348186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=348186"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/348186\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/125946"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=348186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=348186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=348186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}