5 Financial Blind Spots That Catch People Off Guard Before Retirement
Most people approaching retirement feel reasonably prepared. But there are five planning gaps that show up again and again — and most people don't know they have them until it's too late to fix them easily.
Retirement Income Sequencing
Knowing how much you've saved is not the same as knowing how to turn those savings into reliable income. The order in which you draw from different accounts — taxable brokerage accounts, traditional IRAs, Roth IRAs — has a significant impact on how long your money lasts and how much you pay in taxes. Many people default to drawing from whatever account is most convenient, without realizing that a more deliberate sequence could meaningfully extend their portfolio's longevity.
Outdated Beneficiary Designations
Beneficiary designations on retirement accounts and life insurance policies override your will. That means if you named an ex-spouse as beneficiary on your IRA twenty years ago and never updated it, that's where the money goes — regardless of what your estate documents say. This is one of the most common and most consequential blind spots. It's also one of the easiest to fix, once you know it's there.
Healthcare Cost Underestimation
Medicare doesn't cover everything, and the gap between what people expect to spend on healthcare in retirement and what they actually spend is often substantial. Long-term care costs — which Medicare largely doesn't cover — can be particularly significant. Planning for healthcare as a distinct line item, rather than folding it into a general "expenses" category, tends to produce a more accurate picture.
Social Security Timing
The decision of when to claim Social Security is one of the most consequential financial decisions most people make — and one of the least understood. Claiming at 62 versus 70 can result in a difference of 76% in your monthly benefit. The right answer depends on your health, your other income sources, your spouse's situation, and your tax picture. It's rarely as simple as "claim early" or "wait as long as possible."
Estate and Financial Plan Misalignment
Your financial plan and your estate plan are two separate documents, often prepared by two different professionals. When they're not coordinated, the results can be costly: assets that pass outside your will, tax inefficiencies that could have been avoided, and family members left navigating a complicated situation. A comprehensive review looks at both plans together — not in isolation.
If any of these gaps sound familiar, a Financial Blind Spot Review is a good place to start. It's a no-obligation conversation designed to identify what may be missing from your financial picture before you retire.
Find out what you might be missing.
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Schedule your free reviewJohn Adler does not provide legal or tax advice. This article is for informational purposes only.