Five Risks to Successful Retirement

by | Jul 24, 2025 | Financial Planning, Integras Insights, Retirement

Many people have unanswered questions about setting themselves up for a successful retirement. Below are the primary risks to consider and some general ideas for overcoming them.  We help our clients address these risks through financial planning, which starts with identifying the amounts needed to fund goals (like retirement).  This conversation is different for everyone, so we invite you to connect.

Underfunding:

Not saving enough for retirement becomes harder to correct in later years. Try to maximize saving through your employer’s retirement plan.  Many Americans contribute only the amount that triggers an employer match, failing to adequately fund this primary channel for retirement savings.  Since salary-deferral contributions are not taxed, the reduction to your take-home pay is less than any contribution increase.

Overspending:

Be conservative with your portfolio’s growth rate assumption, and try to set your baseline withdrawals below that rate. Overspending early in retirement can be particularly detrimental to the longevity of your portfolio. Consider a flexible withdrawal approach where you can give yourself a “raise” In years when the market performs better than you projected.   

Longevity: 

Life expectancies are a mid-point, not an end-point.  What you don’t want to do is plan to live to age 88 and turn 87 without enough money for the next 10 years. With increasing life expectancy, retirees should plan to spend 35 years in retirement.

Investments too Conservative: 

The refrain of maintaining your principal and living off interest is not a good strategy.  Inflation compounds every year, so every retiree needs some growth investments to maintain their lifestyle.  Growth investments do better over long periods of time and can offset the challenges of increased longevity and rising costs.

Inflation and Medical Costs:

Inflation occasionally spikes (like after COVID), but even a 4% rate doubles your expenses in 18 years.  It’s estimated that 80% of your lifetime medical expenses occur in your last five years, and the medical cost inflation rate averages 8%.  Be sure to factor rising healthcare and living costs into your retirement planning.

The “4% Rule” is outdated and can compromise a peaceful retirement if markets decline early in your retirement.  Integras Partners created time-layered strategies to grow investments with appropriate risk throughout your retirement.  

Click here to learn more.

You might also like…

Tax Deferred Exchanges with UPREIT Programs

Tax Deferred Exchanges with UPREIT Programs

If you sell an investment property like a rental home or other piece of commercial real estate, you will owe taxes on the gain. Between capital gains tax and depreciation recapture, a taxpayer could pay more than 1/3 of their gain in taxes. Many investors turn to DST...

read more
Deferring Tax on the Sale of Investment Property

Deferring Tax on the Sale of Investment Property

If you sell an investment property like a rental home or other piece of commercial real estate, you will owe taxes on the gain. Between capital gains tax and depreciation recapture, a taxpayer could pay more than 1/3 of their gain in taxes. Many people aren’t aware...

read more
Young Professionals: Establish Healthy Investing Habits

Young Professionals: Establish Healthy Investing Habits

Meet Megan. She’s in her early 30s, single, and fairly stable in her career, although she may change employers. Like most younger professionals we work with, Megan was unsure how to get started. She had a couple of previous company retirement accounts and a Roth IRA...

read more