For many people, retirement is the culmination of a successful work career. Some can adapt quickly to the changes that confront them without a workplace to go to daily. Others aren’t as ready for the changes when you leave the workforce permanently.

While most adults nearing retirement think about the financial aspects of living without a paycheck, many other challenges retirees face can make the transition less enjoyable and stress-inducing. 

Like an athlete who retires, adults who’ve been gainfully employed for 40 or 50 years will miss the structure of a workweek where you were at the office or in the field for eight or nine hours, five days a week. 

So, while retirees must construct a viable financial plan to support themselves throughout the many years they might have in retirement, it’s also essential for them to set themselves up to enjoy the lifestyle change. 

Retirees continue to make mistakes that affect their enjoyment of retirement. These five are some of the most common to avoid. 

Underestimating How Long You Will Live

The 2022 Natixis Global Survey surveyed 2,700 financial planners and other professionals from 16 countries. The survey uncovered some of the most common retirement planning mistakes people make.

The second-highest response from these financial professionals — 46% chose this retirement mistake — was underestimating how long you will live. 

TIAA (Teachers Insurance and Annuity Association of America) states that the average 60-year-old American male will live another 22 years, while the average American female is expected to live another 25 years to 85. 

TIAA’s data is from its 2022 report Financial literacy, longevity literacy, and retirement readiness. It found that Americans who are both financially literate and longevity literate are more likely to be ready for retirement, no matter how long it lasts.

As part of the report, TIAA, in partnership with GFLEC (Global Financial Literacy Excellence Center), surveyed 3,582 Americans 18 and older, of whom 1,025 were retired. Of those surveyed, only 37% answered correctly about the life expectancy of 60-year-old men and women. 

“Considering those with poor longevity knowledge and those underestimating life expectancy together, more than one-half of U.S. adults (53%) are working with inaccurate information which can jeopardize their retirement preparedness.” TIAA’s report stated. 

Investing Too Conservatively

When the Canada Pension Plan went into effect in 1966, the average life expectancy for Canadians was 71.83 years. At the launch, the age eligibility for Old Age Security was 69, less than three years until the average life expectancy.

Now imagine you’ll retire at 65 and only live to 68. Your investments would only have to last three years. They wouldn’t need to be risk-oriented to ensure you earned enough income to cover your expenses. 

However, if you know you’ll live to 82, you’ll need 17 years of living expenses, not three. That’s a significant difference. According to the TIAA report, investing too conservatively was the fourth-largest response by financial professionals at 41%.

Fidelity suggests that you save six times your salary at age 50, eight times at age 60, and 10 times at age 67 to meet your financial needs in retirement. 

Financial institutions provide various guidelines. The important thing is to take sufficient risk to meet your retirement savings goals.

Underestimating Health Care Costs

To enjoy your retirement, you must be healthy and alive. Unfortunately, Americans underestimate their retirement healthcare costs, which naturally stresses their lives. 

According to Fidelity, the average 65-year-old will spend an average of $165,000 on healthcare costs in retirement. 

“Fidelity estimates that about 10% of the total outlay will go toward out-of-pocket prescription drug costs, 43% toward Medicare Plan B and Part D premiums, and the remaining 47% to ‘other medical expenses,’ such as co-payments and deductibles,” Financial Advisor IQ wrote on Aug. 23.

The problem is that the average American believes it will be significantly less at $75,000.

Don’t get caught short on health care costs. Few expenses are more critical to cover financially. 

Not Creating a Purposeful Retirement

It’s easy to think that your retirement will be filled with days on the golf course and trips to exotic places. However, for most people, retirement isn’t like that. You have a lot of unstructured time you didn’t have when working full-time. It can be challenging to fill if you don’t have a purpose to guide you. 

Psychology Today quoted retirement specialist Mike Drak in an April 2024 article about the keys to a good retirement. Drak suggested that there are two types of retirees: comfort-oriented retirees and growth-oriented retirees. 

The former seeks leisure, relaxation, and fun, exploring new hobbies, learning a new language, or taking up a new sport. The important thing is that you realistically consider your preferences. If you’re a type A personality, taking up knitting might not give you the purpose you seek.

The latter wants to achieve goals and complete projects that give your life purpose. It doesn’t mean the projects are the saving-the-world type; they just meaning for you. 

Failing to Socialize

The University of California, San Francisco (UCSF) conducted a study that found 43% of seniors experienced loneliness. The National Academies of Sciences, Engineering, and Medicine published a 2020 report entitled Social Isolation and Loneliness in Older Adults. 

“Approximately one-quarter of community-dwelling Americans aged 65 and older are considered to be socially isolated, and a significant proportion of adults in the United States report feeling lonely,” the report’s summary stated. 

Socially isolating oneself, especially in retirement, has the potential, if left unchecked, to reduce or eliminate a purposeful life. At the same time, there is plenty of evidence that social isolation can lead to poor health, lower quality of life, and early death. 

“Substantial evidence supports the association of social isolation, loneliness, and certain other indicators of social connection (e.g., social support) with an increased incidence of major physical, cognitive, and psychological morbidities; poorer health-related behaviors; and lower perceived well-being or HRQL,” the report concluded.  

Plenty is made of the financial aspects of retirement. However, if retirees don’t do the work to stay socially connected, the ramifications are far more significant than not having saved the prescribed amount for retirement.

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