According to a study by the American College of Financial Services, only 33% of Americans aged 50 to 74 have a formal retirement plan in place. If you’re putting this off, you're certainly not alone—but that doesn't make it any less dangerous. Retirement planning might not seem urgent, but it’s one of the most critical decisions that will shape your future well-being. Every month you wait, you lose out on opportunities to protect yourself. Let’s look at the common risks that can jeopardize your retirement and the steps you can take today to protect your future.

Retirement should be a time for fun and relaxation. Instead, many Americans end up worrying about their finances. Relying on stock market investments for your income can leave you with little certainty. If you’re not one of the lucky ones with an employer pension, you might think you’re destined for constant financial stress. The good news is that it’s optional. With the right financial planning, you can create your own paycheck for life, even if you don’t have a pension.

As a financial advisor specializing in retirement planning, I spend a lot of time talking about this topic. Sadly, too many people are not even aware that you can create an income source that’s safe from the gyrations of the market.  

Fortunately, it is very possible. The key is to start planning early. If you wait too long, you may have fewer options, and those choices may be more expensive.

The current national debt is more than thirty-four trillion dollars, and it's increasing literally by the second. The number is so large that it's almost impossible to comprehend. Here’s one way to understand the scale of it all: If you were to count back in time one billion seconds, you'd find yourself back in the 1980s. But if you were to count a trillion seconds, you'd be transported to the era of wooly mammoths, around 30,000 B.C. 

What's even more alarming is that this number is currently skyrocketing, with a staggering $1 trillion added every 100 days. That means it’s growing at a rate of about 10 billion dollars per day.  

But America’s debt load is nothing new. Should you be concerned?  

I believe the answer is yes, and doubly so if you are in or approaching retirement. Let's dive into the potential risks this massive liability could pose to your future.

Social Security is a program designed to replace a part of an individual's working income when they reach retirement age. The benefits are financed through payroll taxes. The program has come under scrutiny in recent years due to the dwindling of some of its sustaining resources.

In a recent report, the Social Security Board of Trustees stated that the program's primary trust fund will run out of assets by 2033. When the trust fund is empty, the program will be able to pay only 80% of promised benefits unless corrective action is taken.

We’ve all heard those classic retirement tips—“save 15% of your income” or “just follow the 4% withdrawal rule.” These rules of thumb have been passed down for decades.  As a financial planner who specializes in retirement planning, I hear people mention these frequently.  But the important question is, do these old rules really hold up in today’s world?

Years ago, people retired and lived maybe another 10 or 15 years. But today, retirement could last 30 years or more. The stakes are dramatically higher since you could spend just as much time in retirement as you did working. With people living into their 90s and beyond, the traditional rules simply weren’t built for the financial realities we face today. 

While these old rules of thumb might be a decent starting point, they’re not designed for today’s retirement planning.  You don’t want to build your future on what is essentially a guess. Instead, you deserve a well-thought-out plan that can protect you from running out of money or being forced to downsize your lifestyle.  

But do these guidelines have any place in your retirement planning? Let’s take a closer look and find out if they’re still relevant—and if not, what you might want to consider instead.

No one likes to think about their own death. Many avoid the subject entirely. But here's the catch: if you don't face it, you might not realize how long your retirement could last. Ask yourself: can you afford to risk outliving your savings?

Ignoring this question can be a dangerous mistake. Unfortunately, many Americans are doing just that. A recent CNBC survey found that 64% of those saving for retirement are planning for just 20 years or less of retired life—or they aren't planning at all!  

Twenty years might sound like a long time. But in reality, many Americans are spending 30-plus years in retirement. If you don't plan for that, you could run out of money when you need it most.

Do you worry about the skyrocketing costs of healthcare? If so, you're not alone. Research by the University of Michigan found that more than half of those 50 or older worry about how the spiking costs of medical care, long-term care, and prescription drugs will impact their retirement.

What about Medicare? There's a common belief that once you turn 65, Medicare will take care of most of these costs. The reality is, unfortunately, quite different. Medicare only covers a fraction of these often staggering expenses. Let's dive into what you can expect and how to plan for these costs in your retirement.  

If you're tuning in, you're already taking your first steps towards a secure future.

There’s nothing easy about investing for retirement.  

Market fluctuations can have an impact on your financial security, particularly as you approach retirement. Since retirement planning involves making decisions that will affect your long-term financial stability, it's important to carefully consider how market volatility may influence your investment strategy. Planning effectively can help you manage risks and work towards a more secure financial future. As a financial advisor, I understand these concerns. That’s why my message is always to focus on putting a solid retirement plan in place.

Listen to find out how to put a solid plan in place

You can save diligently your entire working life, but without a solid spending plan, those savings might not last. The process, called “decumulation”, is the gradual conversion of retirement savings into income.  

Crafting that spending plan is no small feat. Nobel prize-winning economist Richard Thaler noted that “decumulation is a more difficult challenge than accumulation”. Financial planner David Agway noted that one wrong withdrawal in your retirement fund can ruin a decade of investing. So given this reality, how can you protect your financial future? 

Listen to find out what to do

Many people assume that Medicare will cover most of their health expenses.  That misconception leads them to believe that they don't need to worry too much about healthcare costs in retirement.

A 2022 survey by Fidelity Investments shows just how widespread this belief appears to be. According to the research, many people underestimate health expenses once they qualify for Medicare.  The survey found people believed they’ll only require about $41,000 for out-of-pocket expenses over their entire retired life.   

In fact, many people seem to be looking forward to Medicare, hoping they will finally be free from all these premiums and copays. Unfortunately, that's far from the reality.  

Listen to learn about the reality and what to do about it.