Don’t Do What I Did: Retirement Money Mistakes to Watch Out For

Even though I used to think of what my life as a retiree would look like, the way I pictured myself is way different than how I currently live my life. There are many issues that I underestimated. I found myself going through ups and downs that could have been avoided. But, I guess, that’s what life’s about, right? We never stop learning.

I had friends who gave me advice, but I never really listened to anyone’s counsel. I preferred to do everything in my way and ignored all the people who tried to help me. I regret my actions, but there’s nothing I can do about it anymore.

Making mistakes when it comes to money is a very common experience. We tend to consider ourselves ready for the new phase of our lives, but in reality, the results can be more serious. When you are younger, recovering from financial mistakes is not a big deal, because you’ve still got time to earn more money. But what happens in retirement? Unfortunately, most seniors depend on their nest egg. They need to learn how to live on a fixed income and always pay attention to the decisions they make.

Read on and discover the mistakes I’ve made. I was surprised to find out that these are extremely common. And I have to admit that this information made me feel a little better. However, that feeling of guilt still haunts me every night and day. My mind is full of questions without answers. I keep wondering what my life could have looked like if I were more careful.

4 Financial Mistakes MOST People Make After Retirement:

1. Spending too much too soon

Oh! I really can’t believe that I did that. I saved for a long, long time, thinking that my money would be enough for a normal lifestyle. Well, guess what? I was wrong. Unfortunately, I spent more than I even imagined I could in just a few months.

Once I became a retiree, I felt the need to change a lot of things in my house. I reorganized everything and even painted my walls. Don’t get me wrong! It was fantastic to have such an opportunity, because I got to rediscover myself and find my peace.

However, when I woke up from my beautiful dream, I realized that a huge part of my savings had disappeared. I was so focused on how to make the best out of my golden years that I simply forgot about the serious problems in retirement.

So, I learned the hard way that discipline is key. I couldn’t avoid the temptation to spend huge amounts on redecorating. Am I crazy? Maybe. Am I regretting my decisions? Yes! Did my home turn out amazing? Well, that’s also a YES!

I simply love what my home looks like. It’s the perfect place to relax and enjoy my golden years. All I need to do now is pay more attention to the way I manage my fixed income. Because… let me tell you a secret: I want to travel the world, so my husband and I are doing our best to save some cash for our next adventures. So, yes, I am going to think about the potential health problems that may appear, but I still want to live my life to the fullest.

2. Falling for scams

I know, I know, it might sound silly, but unfortunately, I went through this too. I learned that retirees are the most targeted group when it comes to scams. Some of the most famous ones are trying to fool people by exploiting their emotions. For example, I got scammed by a call.

A small child called me and told me that he needed money to pay the rent and help his mom. Since I know how hard it can be to keep up with all the price hikes, I immediately thought that I would do my best to help him.

After I sent him some money, he begged me not to tell anyone about our secret deal. He even promised that he’ll contact me to send me the money back. In those moments, I didn’t think at all about how a child could access his mother’s card information and my phone number. I was surprised to hear what they were going through, and all I wanted to do was to help them.

I later discovered that this is one of the most popular scam methods, involving children in all these dirty games, which usually guarantees success. Seniors tend to become very emotional when it comes to small children.

You should also know that in other versions of this scam, a caller can claim to be a doctor, an arresting police officer, or even a lawyer trying to help a kid. Yes, you read that right. So, next time you receive a call from an unknown number, don’t answer.

3. Applying for Social Security too early

Are you eligible to apply for Social Security? Then, keep in mind that it doesn’t mean you need to start taking benefits. I almost made a huge mistake and started to take the benefits at age 62. But after talking to some friends who were in an identical situation, I understood that I was about to receive 25% less than what I’m about to get at retirement age of 66.

Make sure to think twice before making any decision that involves money. The maximum benefits you can receive are at 70 years old, so that should be the target to shoot for to retire for all of us.

Here’s a budget planner that will help you manage your finances. Trust me, it’s a life-changer!

4. Supporting adult working children

My daughter never asked for too much. She worked and formed her own family. Her husband is a sweetheart, and they offered us a beautiful granddaughter. I love them from all my heart.

Not so long ago, I used to feel the constant need to help my daughter financially, even though her husband and she were doing much better than Tom and I. I felt like it was my job to take care of her needs. And don’t get me wrong! I didn’t send her a high amount of money, but I used to make sure to do it monthly.

She repeatedly told me that she doesn’t need that money, but accepted it just because she wanted me to feel good. On my 60th birthday, she offered me all the money I sent her in the last few years. Her beautiful gesture brought me to tears. She told me that she wants me to travel the world and take care of my health. She let me know that she got me forever, and I no longer have to worry about her financial situation.

So, if your kids are grown and have their own families, let them live their lives and learn their lessons. Be there to support them emotionally, but not financially. Your golden years should be about you. Focus on yourself and your needs for the first time in your life. You don’t know how much time you’ve got to satisfy some of your biggest dreams. Don’t hesitate and do all the things you postponed. Your kids would be fine.

Have you experienced any of these ‘mistakes’? Let me know in the comment section found below.

Before leaving, here’s today’s song pick: “The Long and Winding Road” by The Beatles — Because every financial journey has its turns, and teaches us something lasting.

Don’t know what to read next? Here’s my recommendation: 9 Best Places to Retire on a Budget in 2025