{"id":101711,"date":"2025-08-22T11:41:21","date_gmt":"2025-08-22T11:41:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/101711\/"},"modified":"2025-08-22T11:41:21","modified_gmt":"2025-08-22T11:41:21","slug":"the-no-1-mistake-middle-class-retirees-make","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/101711\/","title":{"rendered":"The No.1 Mistake Middle-Class Retirees Make"},"content":{"rendered":"

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The problem isn\u2019t that people don\u2019t save for retirement<\/a>. There\u2019s another mistake that Kyle Wurtzel<\/a>, a partner and private wealth advisor at Northwestern Mutual<\/a>, has seen play out countless times with clients: They think retirement will be way cheaper than it actually is.<\/p>\n

\u201cOne of the biggest mistakes I see middle-class retirees make is assuming their spending will significantly decrease in retirement,\u201d Wurtzel explained. \u201cWhile it\u2019s easy to believe expenses will drop dramatically, the reality is they often stay the same or even increase<\/a>.\u201d<\/p>\n<\/p>\n

Why Retirement Expenses Don\u2019t Disappear Like You Think<\/p>\n

It makes sense to think this way. No more commuting costs, work clothes or daily lunch expenses. But Wurtzel said other costs quickly fill that gap.<\/p>\n

\u201cTravel, healthcare, supporting adult children or grandchildren and simply having more free time to spend can all stretch a budget,\u201d he said. \u201cIf your retirement plan doesn\u2019t account for that, you may find your savings falling short faster than expected.\u201d<\/p>\n

The numbers prove his point. According to Northwestern Mutual\u2019s 2025 Planning & Progress Study<\/a>, Americans believe they need $1.26 million to retire comfortably in 2025. Very few middle-class retirees are actually planning to hit that target.<\/p>\n

What To Do Instead of Wishful Thinking<\/p>\n

Wurtzel\u2019s solution is simple. Get realistic about your actual retirement lifestyl<\/a>e, not your hoped-for budget cuts.<\/p>\n

\u201cInstead of underestimating your future expenses, build a retirement plan based on your actual lifestyle goals,\u201d he advised. \u201cThat means accounting for inflation, long-term care and how you want to spend your time, not just how you hope to save money. The more realistic your outlook, the more secure your retirement can be.\u201d<\/p>\n<\/p>\n

The Other Mistakes Middle-Class Retirees Make<\/p>\n

Thinking retirement will be cheaper isn\u2019t the only mistake that can cost middle-class retirees.<\/p>\n

Going It Alone Too Long<\/p>\n

The second major error Wurtzel sees is people waiting too long to get professional help. Some people also think they don\u2019t need an advisor once they retire.<\/p>\n<\/p>\n

\u201cAnother common mistake we see is waiting too long to start working with a financial advisor or assuming you no longer need one once you\u2019ve reached retirement,\u201d he said.<\/p>\n

Retirement planning is way more complicated than just saving money<\/a>. Wurtzel said it involves balancing multiple moving parts that most people have never dealt with before.<\/p>\n

\u201cAddressing retirement concerns and financial preparedness requires a personalized, comprehensive approach to financial planning that considers both the accumulation and protection of wealth,\u201d he said. \u201cA financial advisor can play a crucial role in helping individuals navigate these complexities, identify blind spots and create tailored plans that align with their unique goals and circumstances.\u201d<\/p>\n

Banking on Social Security as Your Main Plan<\/p>\n

The third mistake hits close to home for many Americans. They view Social Security as their primary retirement income source. Wurtzel said this approach is both risky and limiting.<\/p>\n

\u201cDon\u2019t assume Social Security will be enough,\u201d he said. \u201cIt is designed as a safety net, not your entire plan.\u201d<\/p>\n

Social Security benefits alone won\u2019t cut it. Another issue to consider: when exactly you should start taking benefits. The timing decision can majorly impact your monthly income throughout retirement.<\/p>\n

\u201cThere\u2019s also the decision on when to take Social Security which can significantly impact monthly income in retirement,\u201d Wurtzel noted. \u201cAdvisors can help people run the numbers, weigh options and make the decision that\u2019s best for their specific situation, especially if they\u2019re balancing other retirement income sources.\u201d<\/p>\n

Building a Retirement Plan That Actually Works<\/p>\n

Wurtzel focuses on diversification and realistic planning rather than hoping for the best. He knows Social Security\u2019s future remains uncertain. That makes backup plans even more important<\/a>.<\/p>\n<\/p>\n

\u201cSocial Security might look different years from now when you\u2019re ready to retire, but, with a larger holistic retirement plan in place, you can avoid relying on it as your sole income source,\u201d he explained.<\/p>\n

His recommended strategy involves multiple income streams and protection strategies that work together.<\/p>\n

\u201cA diversified mix of savings, investments and protection strategies like guaranteed income or long-term care coverage can go a long way in building peace of mind,\u201d Wurtzel said.<\/p>\n

The Bottom Line on Retirement Reality<\/p>\n

Wurtzel\u2019s message is clear. Successful retirement planning requires honest assessment of your future needs, not optimistic assumptions about future savings. The middle-class retirees who struggle most are often those who planned based on what they hoped retirement would cost rather than what it actually costs.<\/p>\n

You can avoid the most common retirement planning pitfalls by building realistic expense projections, getting professional guidance and creating diversified income streams beyond Social Security.<\/p>\n","protected":false},"excerpt":{"rendered":"\u00a9Shutterstock.com Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We…\n","protected":false},"author":2,"featured_media":101712,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,17299,147,530,14811,1666],"class_list":["post-101711","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-gobankingrates","tag-personal-finance","tag-personalfinance","tag-planning","tag-retirement"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/101711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=101711"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/101711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/101712"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=101711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=101711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=101711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}