{"id":330308,"date":"2025-10-25T00:04:17","date_gmt":"2025-10-25T00:04:17","guid":{"rendered":"https:\/\/www.europesays.com\/us\/330308\/"},"modified":"2025-10-25T00:04:17","modified_gmt":"2025-10-25T00:04:17","slug":"this-is-the-number-one-factor-retirement-clients-overlook","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/330308\/","title":{"rendered":"This Is The Number One Factor Retirement Clients Overlook"},"content":{"rendered":"\n

As you plan your retirement<\/a>, you\u2019re meticulous about everything. You started a Roth IRA as soon as possible. You jumped on your employer\u2019s 401(k) match<\/a>. Still, there may be one aspect of retirement planning you\u2019ve overlooked \u2014 and if you don\u2019t address it now, you could run out of money in your golden years.<\/p>\n<\/p>\n

For You: Dave Ramsey Warns: This Common Habit Can Ruin Your Retirement<\/a><\/strong><\/p>\n

Learn About: 3 Advanced Investing Moves Experts Use to Minimize Taxes and Help Boost Returns<\/a><\/strong><\/p>\n

Longevity sounds like a good thing. After all, who doesn\u2019t want to live a long time? But if you haven\u2019t factored longevity into your retirement, you could outlive your savings<\/a>. According to many financial experts, longevity can come with a major expense that drains your savings faster than you expect \u2014 one you might not think about while you\u2019re younger and healthier \u2014 and that\u2019s health care.<\/p>\n

GOBankingRates spoke with Michael LaCivita, a certified financial planner with Domain Money<\/a>, and Whitney Stidom, vice president of consumer enablement at eHealth Inc.<\/a>, to learn more.<\/p>\n

As retirees live longer than ever before, they\u2019ll need more money to maintain a high quality of life, including access to healthcare and long-term care. While staying active and healthy throughout life is important, there are certain things you can\u2019t control \u2014 such as a family history of chronic conditions or sudden illnesses and injuries \u2014 and you need to be financially prepared.<\/p>\n

\u201cCosts for healthcare can fluctuate widely depending on condition and care throughout one\u2019s life,\u201d LaCivita said.<\/p>\n

He added that investors should recognize this reality when strategizing for retirement. \u201cOne of the key mistakes investors make as they enter retirement is getting too conservative too early with their investment allocation<\/a>,\u201d he said.<\/p>\n

Read Next: The Roth Conversion Mistake That Could Cost You Tens of Thousands \u2014 and How To Get It Right<\/a><\/strong><\/p>\n

LaCivita said the traditional 60% stock and 40% bond portfolio for retirement was developed and popularized long before today\u2019s retirement realities.<\/p>\n

\u201cThis portfolio recommendation<\/a> never anticipated retirees living into their 90s and the costs of assisted care or memory care, which can range from $12,000 to $20,000 per month,\u201d he said.<\/p>\n

He suggests maintaining a more equity-weighted portfolio through most of retirement, since equities have historically provided higher returns than a 60\/40 portfolio \u2014 which can allow for greater asset growth and contributions later in life.<\/p>\n

Story Continues <\/p>\n

\u201cPlanning for increased volatility in one\u2019s retirement portfolio can be accomplished with additional short-term cash holdings earmarked for emergencies, kept in high-yield savings accounts or money market accounts<\/a>,\u201d he said.<\/p>\n

If anyone is aware of the perils of overlooking healthcare expenses in retirement, it\u2019s Stidom.<\/p>\n

\u201cHealthcare is one of the most commonly overlooked expenses in retirement \u2014 and it can be a major financial shock even after people become eligible for Medicare coverage<\/a>,\u201d she said. \u201cIn fact, 76% of Americans underestimate what they\u2019ll spend on medical care in their later years.\u201d<\/p>\n

To avoid unexpected costs, she encourages retirees to make proactive, informed decisions about Medicare coverage related to prescriptions, preferred doctors and chronic condition management.<\/p>\n

\u201cThese choices can make a big difference in keeping retirement budgets on track, while potentially saving Medicare beneficiaries more than $1,800 per year on out-of-pocket costs,\u201d she said.<\/p>\n

Stidom shared three additional tips for effectively managing healthcare costs before they become a burden.<\/p>\n

\u201cA growing number of people are opting for Medicare Advantage, which now provides coverage for about 50% of Medicare beneficiaries,\u201d she said. \u201cBut choosing a Medicare plan can be complex, given the average beneficiary has more than 40 Medicare Advantage plans to choose from in their local area.\u201d<\/p>\n

Working with a financial adviser can help you choose the right plan \u2014 and Stidom advises shopping for plans that match your personal needs and budget during the fall annual enrollment period.<\/p>\n

\u201cPeople who comparison shop for a Medicare Advantage plan can potentially save more than $1,800 a year,\u201d she said.<\/p>\n

\u201cFor the 68% of Medicare beneficiaries with at least one chronic condition, it may be helpful to evaluate a chronic special needs plan (C-SNP),\u201d she said. \u201cThese plans, which are surging in popularity, can help lower prescription medication costs and offer additional benefits specifically designed for people with qualifying chronic conditions.\u201d<\/p>\n

She added that these plans can improve coverage for conditions such as diabetes by covering blood glucose monitoring supplies or offering access to lifestyle support programs.<\/p>\n

\u201cThis additional coverage and support can help translate into lower healthcare expenses and potentially improved well-being,\u201d she said.<\/p>\n

Stidom noted that comparing plans can lead to better savings on prescription medications<\/a>.<\/p>\n

\u201cWhile many Medicare Advantage and Part D plans provide prescription drug coverage, each has a different list of medications they cover \u2014 and at different cost-sharing tiers,\u201d she said. \u201cMedicare Advantage beneficiaries who shop around can save more than $800 per year on prescription costs \u2014 all while keeping coverage for the same or equivalent medications.\u201d<\/p>\n

It\u2019s time to think about potential longevity and healthcare costs as seriously as you\u2019ve considered other financial aspects of your retirement. Overlooking this key factor in your senior years could cost you \u2014 and it doesn\u2019t have to.<\/p>\n

This article is part of GOBankingRates\u2019 Top 100 Money Experts<\/strong> series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub<\/a><\/strong> \u2014 and you\u2019ll be entered for a chance to win $500.<\/p>\n

More From GoBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: I\u2019m a Financial Advisor: This Is The Number One Factor Retirement Clients Overlook<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"As you plan your retirement, you\u2019re meticulous about everything. You started a Roth IRA as soon as possible.…\n","protected":false},"author":3,"featured_media":330309,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,78093,7780,3235,28533,255,700,708,67,132,68,164016],"class_list":{"0":"post-330308","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-chronic-conditions","10":"tag-dave-ramsey","11":"tag-medicare","12":"tag-medicare-advantage","13":"tag-personal-finance","14":"tag-retirement","15":"tag-retirement-planning","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us","19":"tag-whitney-stidom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115431883653066655","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/330308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=330308"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/330308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/330309"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=330308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=330308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=330308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}