When I was younger, I used to think that going broke in retirement was something that happened only if you’d never saved a dime. You know, the stereotypical person who lived it up in their twenties, spent their thirties borrowing money, and then wondered at sixty-five why the Social Security check wasn’t enough to cover the champagne lifestyle. But over time, and especially once I started looking at my own retirement, I realized the truth is a lot trickier. You can do everything “right”, save diligently, pay off the mortgage, even have a tidy little nest egg, and still wind up in financial quicksand if you’re not careful.

The funny thing is, most people don’t go broke in retirement because of one giant disaster. It’s usually a mix of small leaks in the ship, the kind you don’t even notice until the water’s up to your knees. Retirement is supposed to be the golden years, but gold has a way of slipping through the cracks if you don’t hold on tight.

One of the biggest culprits is underestimating how long retirement will last. I remember when I first ran the numbers and realized that if I live to ninety, I’ll have been retired for a quarter of a century. That’s a long time to make money stretch, especially if you’re still thinking of retirement as a ten-year vacation. Most of us aren’t just planning for a few years of travel and golf, we’re planning for decades. And that means every financial decision carries extra weight.

Healthcare is another one that sneaks up on people. You’d think that after a lifetime of paying premiums, things would get simpler in retirement. In reality, medical costs are like that relative who overstays their welcome and eats all your leftovers. Between Medicare gaps, prescription drugs, and the chance of long-term care, it’s easy for healthcare to chew through savings faster than you can say co-pay. I’ve watched friends spend more on medical expenses in retirement than they ever expected, and not because they were reckless. It was just the normal cost of getting older. That’s why I always suggest people budget for healthcare as though it’s a second mortgage. You might never use all of it, but if you do, you’ll be glad you planned ahead.

Then there’s the temptation to help family a little too generously. I get it, I really do. When you’ve worked hard your whole life and you finally have a bit of money put away, the urge to step in when kids or grandkids need help can feel overwhelming. But retirement funds don’t replenish themselves like a paycheck does. If you loan your adult child twenty thousand dollars because they’re starting a new business, that’s not just a loan, that’s potentially years of your retirement comfort on the line. And let’s be honest, sometimes “loan” is just a polite way of saying “goodbye, money.” I’ve had to remind myself more than once that saying no doesn’t make me a bad parent or grandparent, it just makes me a responsible one.

Lifestyle inflation also gets a lot of people. After years of saving, it feels great to finally loosen the belt a little. But there’s a fine line between enjoying yourself and draining the tank too quickly. I once knew a couple who decided that retirement was their time to live like royalty, so they bought a vacation condo, two new cars, and took cruises every year. Within ten years, they were forced to sell the condo, and the dream cars had turned into nightmares of upkeep. There’s nothing wrong with treating yourself, but the key is moderation. I remind myself that retirement is a marathon, not a sprint. A little indulgence goes a long way, and I don’t need to buy happiness in bulk.

Inflation is another silent thief, as we all know. Prices don’t just go up, they creep up slowly enough that you don’t notice until suddenly your grocery bill looks like it’s trying to fund a small army. I used to laugh when my parents would say, “Back in my day, bread was a quarter.” Now I’m the one grumbling about how eggs used to be cheap enough to eat for dinner without feeling like I was splurging. Planning for inflation isn’t fun, but it’s necessary. Otherwise, what looks like a comfortable retirement today might feel like scraping by in ten years.

Another way retirees go broke is by being too conservative with investments. I know that sounds strange, because the last thing you want in retirement is risk. But if you pull everything into cash or ultra-safe bonds, you risk your money not keeping up with the rising cost of living. On the other hand, swinging too far into risky investments can also backfire, especially when scammers get involved. I’ve lost count of the horror stories I’ve heard about retirees falling for too-good-to-be-true opportunities. If someone promises guaranteed returns of twenty percent, the only thing guaranteed is that they’ll be buying a boat with your money. I’ve made it a rule to check and double-check any investment idea, even if it comes from someone I trust.

Downsizing, or rather, the failure to downsize, is another big one. Holding onto the big family home can feel comforting, but those extra rooms come with extra costs. Taxes, insurance, maintenance,  these things don’t shrink just because you’re no longer raising kids in the house. I resisted the idea of downsizing for years because I thought of the house as part of my identity. Eventually, I realized I’d rather have money for good experiences than for fixing leaky roofs. Selling the big house was like shedding a weight I didn’t know I was carrying.

And let’s not forget debt. Some people carry credit cards or personal loans into retirement, thinking they’ll just chip away at them slowly. But debt in retirement is like termites in the woodwork. It eats away silently and leaves you with less flexibility and more stress. I’ve always believed that entering retirement debt-free is one of the best gifts you can give yourself. Even if you can’t get rid of all debt, prioritizing the high-interest stuff makes an enormous difference.

Finally, one of the sneakiest ways people go broke is by not paying attention. They simply stop tracking their money once the paychecks stop coming in. It’s easy to think that retirement means you can relax, but relaxing too much with the budget is dangerous. I treat my retirement spending like a garden. If I don’t keep an eye on it, weeds pop up fast. And believe me, nothing ruins the golden years like realizing the weeds have taken over.

So, what’s the antidote to all of this? Awareness. Retirement isn’t about living in fear of going broke, it’s about being smart enough to sidestep the traps. I try to keep a balance: I want to enjoy myself, but I also want to make sure that twenty years down the road, I’m still enjoying myself. That means keeping an eye on healthcare costs, saying no when family asks for money I can’t afford to give, pacing myself on the fun spending, and remembering that inflation and investment choices matter even when I’d rather ignore them.

The truth is, going broke in retirement doesn’t usually happen overnight. It’s the result of small decisions that snowball. The good news is that it means we have a lot of opportunities to catch ourselves before things go off the rails. I’ve found that by checking in on my finances regularly, thinking twice before big expenses, and staying flexible, I can sleep a lot better at night. And really, isn’t that what we all want in retirement? Less worry, more peace, and maybe enough left over for that occasional splurge on ice cream that costs more than it did when I was a kid.

If I had to sum it up, I’d say this: retirement is like walking a balance beam. Lean too far in any direction and you risk falling, but stay steady and you’ll make it across with a smile. I plan to stay on that beam for as long as I can, because I’d rather be the retiree who has a little money left over at ninety than the one scrambling at seventy-five. And with a little awareness, I think we all can be.

Don’t wait until it’s too late, get your financial house in order today!

Happy retirement planning!