Retirement Retirement Planning

Top 15 Retirement Concerns Almost All of Us Have (And How To Manage Them)

From healthcare costs to leisure time, explore solutions for a worry-free retirement journey.

Couple standing together with nervousness at home.
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Your golden years are a time to relax, pursue hobbies, travel, and spend quality time with loved ones. However, there are common retirement concerns that pop up pretty consistently.

These concerns can cast a shadow on the otherwise bright prospect of retirement, but you can plan ahead to manage or eliminate them.

Here are some top retirement concerns that you might face and how to manage them to prepare for a stress-free retirement.

Find Medicare plans with low or $0/month premium
Compare Medicare Advantage plans side-by-side to find what’s right for you
— Select a state below —

Financial stability through retirement

Monkey Business/Adobe senior  couple reviewing bills

Perhaps the most significant retirement concern is financial stability and outliving your retirement savings. To address this concern, start by setting clear financial goals.

Create a comprehensive budget outlining your expenses and identifying areas where you can cut back. Taking advantage of retirement accounts like 401(k)s and IRAs is crucial. 

Diversifying your investments and considering consulting a financial advisor to ensure your portfolio aligns with your retirement objectives is also essential.

Healthcare costs as you age

peopleimages.com/Adobe Woman worried during consultation with doctor.

The rising cost of healthcare is a genuine worry for retirees. To manage this concern, explore your Medicare options and understand what each plan covers. Consider supplemental insurance to fill gaps in coverage.

Maintaining a healthy lifestyle can reduce the risk of medical issues, potentially lowering your healthcare expenses. 

It's also wise to budget for unexpected medical costs and long-term care, possibly by investing in a long-term care insurance policy.

Social isolation

Monkey Business/Adobe depressed man sitting on floor

Retirement can sometimes lead to decreased social interaction, contributing to feelings of loneliness and isolation. 

Make an effort to stay connected with friends and family. Join clubs, groups, or organizations that align with your interests.

Volunteering is a great way to stay engaged with your community and forge new connections. In addition, consider taking classes or attending workshops to continue learning and meeting like-minded individuals.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

Boredom and purpose

fizkes/Adobe mature woman looking sad

The prospect of having ample free time can be exciting, but it can also lead to feelings of boredom or a lack of purpose. Make sure to explore hobbies and activities that bring you joy and fulfillment.

Engage in part-time work or consulting to make extra money and leverage your skills and experience. Most importantly, creating a daily routine that includes leisure and purposeful activities can help you maintain a sense of fulfillment and enjoyment in retirement.

Market volatility

deagreez/Adobe woman biting her lips in an anxious manner.

The volatility of financial markets can cause anxiety for retirees who depend on their investments for income. To manage this concern, diversify your investment portfolio to spread risk.

Avoid making impulsive decisions during market fluctuations, as emotional reactions can lead to financial losses. 

It's advisable to consult a financial advisor who can help you design an investment strategy aligned with your risk tolerance and retirement goals.

Inflation

Krakenimages.com/Adobe Elderly man is nail-biting due to heightened stress.

The eroding effects of inflation on purchasing power are a legitimate worry. To address this concern, consider investing in assets that historically outpace inflation, such as stocks and real estate.

Adjust your retirement savings and investment strategies to account for potential inflation. 

Additionally, always periodically review your budget and make necessary adjustments to ensure your retirement income can withstand the impact of rising prices.

Outliving your savings

Monkey Business/Adobe Woman awake in her bed due to anxious thoughts.

Outliving your savings is a valid concern, particularly as life expectancy continues to increase. Make sure to create a comprehensive financial plan that considers your life expectancy. 

It’s not unusual for financial advisors to assume their clients will live to 100 when calculating retirement projections.

Explore options such as annuities that provide guaranteed income for life and consider delaying Social Security benefits to maximize your monthly payments. Building a diversified investment portfolio can also help generate sustainable income throughout your retirement years.

Affording your home

Daisy Daisy/Adobe worried elderly man gazes out of the front door

Housing costs, including mortgage payments, property taxes, and maintenance, can consume a significant portion of your retirement income. 

Renting instead of owning may also be a viable choice, eliminating the financial responsibilities of property ownership.

Additionally, consider the option of a reverse mortgage if you plan to stay in your current home but need extra funds to cover expenses.

Taking debt into retirement

fizkes/Adobe stressed woman sitting on laptop

Entering retirement with significant debt can be stressful and impact your financial security. Instead, prioritize debt repayment before retiring. 

You should also consider downsizing your home or making lifestyle adjustments to free up funds for debt repayment.

Working with a financial advisor is a smart move to help you develop a plan to become debt-free and enjoy a more financially secure retirement.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today” 
  • Create your account (important!) by answering a few simple questions 
  • Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Your cognitive health

Liubomir/Adobe Man standing outdoors experiencing strong headache.

Cognitive health is a growing concern as retirees seek to maintain mental sharpness and prevent cognitive decline. 

To address this concern, engage in regular cognitive activities, such as puzzles, games, and learning new skills. Staying physically active is key, as exercise has been linked to improved cognitive function. 

Social engagement is also crucial; staying connected with friends, family, and your community can help preserve cognitive abilities.

Tax implications

Andrii Zastrozhnov/Adobe Unhappy woman holding papers while sitting on a bench.

Understanding the tax implications of retirement income is essential for effective financial planning. To manage this concern, consult a tax professional specializing in retirement planning. 

Strategize withdrawals from different types of retirement accounts to minimize tax liability. You should also consider converting traditional IRAs to Roth IRAs to potentially reduce future tax burdens.

Estate planning

InsideCreativeHouse/Adobe Advisor explaining paperwork to a retired elderly couple.

Failing to address estate planning concerns can lead to complications for your loved ones. You can help put your mind at ease by creating a comprehensive estate plan that includes a will, trusts, and power of attorney documents.

Clearly outline your wishes for the distribution of assets and the care of dependents. Also, be sure to regularly review and update your estate plan to reflect any life changes or new assets.

Long-term care

Pixel-Shot/Adobe Couple is stressed due to their financial burdens.

The potential need for long-term care is a significant retirement concern, as costs can quickly deplete your savings. 

To manage this concern, research and consider long-term care insurance options and evaluate your eligibility for government programs that may help cover long-term care expenses.

Alternatively, setting up a dedicated fund or earmarking investments to cover potential long-term care costs can provide financial security and peace of mind.

Changing Social Security rules

Pixel-Shot/Adobe Stressed elderly woman seeks relief by drinking wine.

Navigating the complexities of Social Security rules and regulations can be daunting. To manage this concern, familiarize yourself with the best claiming strategies for maximizing your Social Security benefits.

Consider delaying your claim beyond the earliest Social Security retirement age of 62 to receive higher monthly payments. 

If you're eligible for spousal benefits, explore the optimal timing for claiming to optimize your and your spouse's benefits.

Financial scams

Prostock-studio/Adobe Mature man squints as he uses his mobile phone.

Protecting your retirement savings from financial scams and fraud is of utmost importance. Try to stay informed about common scams targeting retirees, such as phishing emails and fraudulent investment schemes.

Be cautious with your personal information and avoid sharing sensitive details with unsolicited callers. 

Always consider setting up account alerts and regularly monitor your financial accounts to detect unauthorized or suspicious activities.

Bottom line

Enrique/Adobe Confident man standing in office with arms crossed.

Retirement concerns are a natural part of transitioning into this new life phase. While these worries may be familiar, they need not overshadow the joy and fulfillment that retirement can bring. 

By addressing these concerns proactively and implementing effective strategies, you can confidently navigate the challenges and retire comfortably.

Planning and seeking professional guidance is key to ensuring a secure and enjoyable retirement journey. Are you on track? If not, no worries. Take these 15 tips and start planning today.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details