No matter where you’re starting from, your path to retirement may include unexpected twists, turns, and slides. Preparing for what lies ahead can make the journey a bit more enjoyable. Here are some of the challenges you might encounter along the way.
Market Volatility Is Inevitable
Changing interest rates, global developments, and even investor psychology can cause markets to move higher or lower. In uncertain times, it can be tempting to react out of fear. However, a balanced portfolio that reflects your goals, risk tolerance, and time horizon can help you weather market volatility while still taking advantage of opportunities.1
Underestimating the Impact of Inflation
Over time, inflation can erode the purchasing power of your retirement savings. Fortunately, there are financial strategies that can help you manage the effects of inflation and maintain your purchasing power throughout retirement.
Forgetting About Healthcare Costs
A healthy couple retiring at age 65 in 2026 can expect to spend about $661,812 in today’s dollars on healthcare over their lifetimes in retirement, including Medicare Parts B and D, Medigap, dental insurance, and out-of-pocket expenses.² Also, remember to plan for long-term care. Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and support during their lifetime.3
Assuming Retirement Will Look Exactly Like You Expect
Retirement can last two decades or more. The CDC reported that, in 2024, life expectancy at age 65 was 19.7 additional years. That means a retirement plan may need to support a household for 20 years or longer—and for some people, considerably longer.4
Living longer can require more retirement savings. Yet, for some, it may mean changing their expectations about working during retirement. According to the 2026 Retirement Confidence Survey, 74% of workers expect to work for pay in retirement; however, only 31% of retirees actually do.⁵
Planning for the Unexpected
Retirement, like the rest of your life, will be full of changes, challenges, and opportunities. Preparing yourself mentally and financially can help pave a clear path so you can enjoy all the adventures that lie ahead. If you’re wondering whether your retirement plan is prepared for the twists and turns that may come your way, connect with your Patriot advisor. We can review your financial plan, help you prepare for the unexpected, and make sure your strategy remains aligned with your goals.
- Investing involves risks and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
- https://hvsfinancial.com/wp-content/uploads/2026/02/2026-Data-Report.pdf
- https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
- https://www.cdc.gov/nchs/data/nvsr/nvsr75/nvsr75-05.pdf?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fnchs%2Fupdates%2Ffeature-3.html
- https://www.ebri.org/docs/default-source/rcs/2026-rcs/2026-rcs-release-report.pdf?sfvrsn=1229022f_4
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.