![\"Retired](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/iStock-2202636633.jpg\")
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\n iStock \/ Jacob Wackerhausen \/ iStock.com <\/p>\n
Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> Maybe you were an old soul \u2014 or just a smart one \u2014 and you started saving for retirement as soon as you entered the workforce, whether you were making the coffee or picking it up for your boss. Or maybe, after years of grinding it out, you\u2019ve gotten wise to the fact that someday, you\u2019ll want a financially secure life<\/a> in your golden years. So, you learn everything you can about saving for retirement<\/a>, because you\u2019re committed to doing things the right way.<\/p>\n<\/p>\n Spoiler alert: You won\u2019t get everything right. Nobody does. That\u2019s why experts like Steve Chen<\/a>, financial coach and CEO of Call To Leap<\/a>, are here to help. Chen\u2019s passion for guiding others toward financial independence has helped thousands of people just like you build emergency savings, eliminate high-interest debt and invest strategically \u2014 all essential parts of a secure retirement.<\/p>\n Chen has encountered his fair share of people making avoidable mistakes when preparing for retirement, and he spoke with GOBankingRates for our Top 100 Money Experts<\/a>\u00a0series. He shared the biggest misstep he sees: not having a clear plan for saving and withdrawing money. Plenty of people skip this crucial step, and it can create unnecessary stress and financial shortfalls down the road. Fortunately, with some care and thoughtfulness, it\u2019s easy to sidestep this common mistake.<\/p>\n<\/p>\n The Biggest Retirement Mistake: Not Having a Real Plan<\/p>\n If you were driving somewhere new for the first time, you\u2019d want a map, right? A plan to get where you want to go \u2014 and if it happened to come with the location of every cool diner on the road, even better. Since retirement is one of the most important \u201cdestinations\u201d of your life, it makes sense that you\u2019d want a plan for getting there.<\/p>\n But Chen says many people don\u2019t have those plans in place for retirement. \u00a0<\/p>\n \u201cInstead of mapping out spending, taxes, and healthcare costs, they rely on hope \u2014 and that can drain savings fast,\u201d he said. \u00a0<\/p>\n You don\u2019t have to go it alone in building a plan. A financial advisor<\/a> can help you create both short- and long-term savings plans tailored to your income, lifestyle, and goals. Crucially, preparing for retirement involves so much more than just contributing to a 401(k)<\/a> through your employer \u2014 though that is a strong start. (And yes, if your employer offers matching contributions, don\u2019t leave that money on the table.)<\/p>\n<\/p>\n You\u2019ll also want to explore a mix of traditional and Roth IRAs<\/a>, along with other tax-advantaged accounts and investment strategies. \u00a0<\/p>\n \u201cMaking your retirement savings last starts with shifting your mindset from just saving to strategically spending and investing,\u201d Chen said.\u00a0<\/p>\n He teaches the people he works with to use a \u201cbucket strategy\u201d that divides your retirement savings into three timelines:<\/p>\n A Crucial Part of Planning: Having a Strategy for Withdrawals\u00a0<\/p>\n Chen says a big part of having a solid retirement plan includes mapping out how you\u2019ll withdraw your money<\/a> \u2014 not just trying to save as much as you can. People often put so much effort into saving that they forget to plan a withdrawal strategy.<\/p>\n Others lock into a plan so rigid that they can\u2019t adjust when life circumstances inevitably change. While Chen encourages people to start with the 4% rule<\/a> \u2014 as in, withdrawing 4% of your savings\u00a0during your first year of retirement, then adjusting for inflation<\/a> \u2014 he notes that it shouldn\u2019t be treated as gospel. \u00a0<\/p>\n \u201cMany people stick to the 4% rule but overlook strategies like coordinating withdrawals from taxable, traditional and Roth accounts to reduce taxes,\u201d he said. \u201cUsing a flexible approach instead of a fixed rule can help savings last much longer.\u201d\u00a0<\/p>\n<\/p>\n A Lack of Planning Can Cause You To Operate Out of Fear<\/p>\n The prospect of living without a regular paycheck can be daunting, especially if you\u2019ve been working since you were young. And while visions of cocktails on the beach are common, retirement can also bring anxiety and uncertainty.<\/p>\n Sometimes that fear can compel people to become overly conservative with their money, hoarding cash or refusing to invest entirely. They can live so far below their means that retirement loses its joy. \u00a0<\/p>\n But Chen wants you to know that, as with anything else in life, approaching retirement savings with a balanced perspective can make all the difference.<\/p>\n \u201cRetirees don\u2019t have to choose between growth and safety,\u201d he said. \u201cIt\u2019s about finding the right balance. With a smart mix of low-risk income sources<\/a>, growth investments and a cash buffer, savings can stay protected while still growing over time.\u201d<\/p>\n In other words, being too cautious can be just as risky as being reckless \u2014 especially in a retirement that could last 20 to 30 years or more.<\/p>\n Bottom Line<\/p>\n When it comes to retirement, not having a solid financial plan in place is the No. 1 mistake people make. But if you take the time to create a smart and flexible savings and withdrawal strategy that\u2019s guided by expert advice and not fear, you\u2019ll be much better positioned to enjoy a long, fulfilling, and financially secure retirement.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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