Retirement planning often focuses on savings goals, investment returns, and withdrawal strategies—but what about the threats that could quietly knock your plan off course?
In Episode 82 of the Last Paycheck podcast, CERTIFIED FINANCIAL PLANNER® professionals Archie and Rob Hoxton explore the hidden risks that derail even well-funded retirements. These risks aren’t always obvious, but they can have a profound impact if left unaddressed.
If you’re approaching retirement—or already in it—this is the checklist you didn’t know you needed.
1. Inflation: The Rust of Retirement
Even at 2 to 4%, inflation eats away at purchasing power over time. A modest 1% change in your inflation assumption might not seem like much—but over 30 years, it can be the difference between a comfortable lifestyle and an unexpected shortfall.
Archie describes inflation as “the rust you don’t see—until your plan starts to fall apart.”
2. Rising Healthcare Costs
Healthcare is one of the most underestimated retirement expenses. Rob and Archie cite research showing that the average 65-year-old couple could face $300,000 or more in lifetime healthcare expenses—not including long-term care.
With Medicare premiums, out-of-pocket costs, and supplemental insurance all on the rise, your plan needs to account for both predictable and unpredictable medical costs.
3. Behavioral Investing Mistakes
Markets go up. Markets go down. But how you react during those downs can do more damage than the downturn itself.
Rob explains that “investing is more about managing your emotions than your portfolio.” Common missteps like panic-selling or chasing performance can sabotage decades of good planning.
4. Greed: The Other Side of Emotion
Fear isn’t the only emotional threat. Greed can be just as dangerous. Whether it’s chasing the next big stock, jumping on crypto hype, or overcommitting to a “sure thing,” speculative behavior often stems from good intentions—but poor discipline.
If your plan is built on long-term goals, don’t let short-term noise pull you off course.
5. The Wrong Kind of Risk Management
Ironically, avoiding all risk is one of the riskiest things you can do in retirement. Many retirees shift too conservatively and end up falling behind inflation. The real goal isn’t to eliminate volatility—it’s to manage it in alignment with your needs and time horizon.
Rob and Archie recommend maintaining an appropriate level of market exposure to support long-term growth—even in retirement.
Ask Yourself:
- Am I stress-testing my plan for inflation and healthcare shocks?
- Is my portfolio structured to avoid emotional decision-making?
- Have I built in enough growth potential to outpace rising costs?
- Am I reacting to fear or greed—or following a disciplined plan?
Final Thought
A successful retirement isn’t just about how much you’ve saved—it’s about protecting what you’ve built. Ignoring these risks won’t make them go away. But addressing them now? That’s how you build confidence for the decades ahead.