9. Gambling on health expense risk. Even for those on Medicare, health-care costs are eroding spending power and economic security; out-of-pocket expenses for people in retirement have jumped 50 percent since 2002--and that doesn’t include the possible need for long-term care insurance. Health-care costs pose one of the most serious risks to retirement security, so it’s important to understand how to plan for this major expense, navigate the system and manage your spending.
10. Ignoring advice. Even before the economic crash, the boomer retirement knowledge gap was large, and the need for smart planning has only become more acute in hard times. Do-it-yourself planning certainly is an option, but a little help from a professional advisor can be well worth the time and money. The rationale for hiring a trustworthy advisor is simple: Money spent now could make a big difference in helping you achieve a secure, happy future retirement. I recommend getting a fee-only advisor whose counsel won’t be swayed by the need to earn commissions or loyalties to any particular financial product.
SecondAct contributor Mark Miller is the author of The Hard Times Guide to Retirement Security: Practical Strategies for Money, Work and Living (Bloomberg Press/John Wiley Sons).