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Planning for retirement can feel overwhelming, but it doesn’t have to be. The truth is, retirement planning is a lifelong journey—not a one-and-done checklist. Many people make common mistakes that can put their financial security at risk down the road. The good news? By understanding these pitfalls and using trusted resources, you can build a flexible, resilient plan that grows with you.

Common Mistakes

1. Underestimating How Long Your Money Needs to Last

Many people assume their retirement savings only need to last 10-15 years. But with longer life expectancies, your money might need to stretch 20, 30, or even 40 years. Running out of money too soon can cause stress and limit your lifestyle.

What to do:

• Use tools like the Fidelity Retirement Income Calculator to estimate how long your savings might last.
• Factor in inflation, healthcare costs, and unexpected expenses.
• Review your plan annually to adjust for changes in your life or the market.

2. Overlooking Healthcare and Long-Term Care Costs

Healthcare expenses tend to rise as we age, and many retirees underestimate these costs. Long-term care, whether at home or in a facility, can be expensive and isn’t always covered by Medicare.

What to do:

• Include healthcare and potential long-term care costs in your retirement budget.
• Explore insurance options and consider setting aside a dedicated fund for these expenses. Consider using a Health Savings Account (HSA) if eligible, as it offers tax advantages that can help cover health care costs in retirement.
• Use Fidelity Medicare Services to compare plans and get expert guidance.

3. Relying Too Much on Social Security

Social Security is a valuable source of income, but it’s rarely enough to cover all your expenses. Counting on it as your primary income source can leave you short.

What to do:

• Think of Social Security as one piece of your retirement puzzle.
• Maximize your savings through your Halliburton 401(k) plan and other investments to create a diversified income stream.

4. “Set It and Forget It” Mentality

Some people enroll in a retirement plan, pick investments, and then never revisit their strategy. But life changes—new jobs, family needs, market shifts—and your plan should evolve too.

What to do:

• Schedule a reminder in your calendar to review your retirement plan investments at least once a year. It’s also helpful to do a review after major life events.
• Adjust your contributions, investment mix, and goals to reflect your current circumstances and risk tolerance.
• Track your progress with tools like the Fidelity Financial Wellness Dashboard.

For more about avoiding risks in retirement planning, read “Let’s Talk…About Managing Risk in Retirement Planning.”

Understanding and avoiding common retirement planning mistakes is just the first step. Equally important is recognizing that your retirement planning needs will evolve over time, requiring a tailored approach that fits your current life stage.

Retirement Planning for Different Life Stages: Tailoring Your Approach

Your retirement planning needs will change as you move through different stages of life. Here’s a quick guide to help you tailor your approach.

• Early Career (20s and 30s): Build the Habit
  Start saving—even small amounts matter. Take advantage of the Halliburton match in your Halliburton 401(k) plan, automate your contributions, and focus on building an emergency fund.
• Mid-Career (40s and 50s): Increase and Protect
  As your income grows, increase your retirement contributions. Review your investment mix to balance growth and risk. It’s also a good time to think about college expenses, mortgages, and other financial goals. Consider catch-up contributions if you’re 50 or older. Review your insurance coverage and estate planning documents.
• Pre-Retirement (50s and 60s): Fine-Tune and Plan Withdrawals
  Maximize your savings and start planning how you’ll withdraw funds. Think about when to claim Social Security and how healthcare costs will impact your budget. To learn more about strategies for withdrawing money in retirement, read “Let’s Talk … About Which Accounts to Use in Retirement.”

Visit Fidelity’s Learn page and select Topics > Life Events for tailored tips depending on your life stage.

Retirement planning is a dynamic process. By avoiding common mistakes and adapting your plan as your life evolves, you can build confidence and security for the future. 

Sources:
T. Rowe Price: Six Common Retirement Saving Mistakes and How to Avoid Them
Wells Fargo: 5 Retirement Planning Mistakes to Avoid