7 Dangerous Assumptions That Can Quickly Kill Your Retirement Savings

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>John CsiszarTue, Jul 29, 2025, 12:05 PM 5 min readJacob Wackerhausen / iStock.comMany variables go into every retirement projection, making it an inexact science at best. This is why it always pays to allow for some wiggle room when it comes to forecasting your future retirement account balance.Consider This: I Asked ChatGPT When I’ll Be Able To Retire Based on My Current Finances — Here’s What It SaidFor You: 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable AlternativesJust a few wrong assumptions about your retirement can dramatically affect your results, so it pays to consider a wide range of possible outcomes. Here are some of the most dangerous assumptions about retirement that could kill your savings fast, along with suggestions as to how to avoid falling into that trap.One of the biggest variables when it comes to outliving your money in retirement is how long you will live. Unfortunately, this is one of the least predictable variables in any retirement plan given a variety of long-term care needs. Any financial advisor would tell you that healthcare is one of the biggest expenses for seniors and needs to be greatly factored into your big-picture budget.If you build your entire plan around an assumption that you will live an “average” lifespan, you might run out of money if you end up living a long life, or rather, 30 years or more after full retirement age. While you can make some educated guesses about how long you might live based on your family history and your personal lifestyle, always factor in the possibility that you might live much longer.Trending Now: Social Security Full Retirement Age Went Up This Month — Why It May Continue To RiseIt’s not just how long you will live but also about how healthy you will be. Healthcare and home care needs could greatly diminish your retirement savings faster than you think. According to last year’s Retiree Health Cost Index, here are a few key takeaways:The two most common healthcare coverage options chosen by Medicare-eligible retirees are Medicare Advantage Part D (MAPD) and Original Medicare with Medigap plus Part D.A healthy 65-year-old male who retired in 2024 with an MAPD plan is projected to spend $128,000 on healthcare in his remaining lifetime.A female with the same coverage is projected to spend $147,000 in her remaining lifetime.The difference in cost is largely because women on average live longer than men.Under Original Medicare with Medigap plus Part D instead, these projections increase to $281,000 for a male and $320,000 for a female, or a combined total of $601,000 for a 65-year-old couple.In today’s dollars (assuming a 3% investment return), this reflects that at least $395,000 in savings is needed.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,362.92 -7.94 (-0.12%)Dow 3044,461.28 -171.71 (-0.38%)Nasdaq21,129.67 +31.38 (+0.15%)Russell 20002,223.45 -19.51 (-0.87%)VIX16.54 +0.56 (+3.50%)Gold3,323.30 -57.90 (-1.71%)PortfolioSign in to access your portfolioSign inTop gainersWING Wingstop Inc. 368.26 +77.96 (+26.85%)FTAI FTAI Aviation Ltd. 144.46 +30.32 (+26.56%)PIII P3 Health Partners Inc. 7.30 +1.50 (+25.86%)GNRC Generac Holdings Inc. 181.08 +29.76 (+19.67%)TER Teradyne, Inc. 107.65 +17.10 (+18.88%)Top losersNEGG Newegg Commerce, Inc. 44.97 -11.22 (-19.97%)CAR Avis Budget Group, Inc. 172.59 -31.29 (-15.35%)SLGN Silgan Holdings Inc. 47.28 -8.52 (-15.26%)CHKP Check Point Software Technologies Ltd. 186.67 -31.66 (-14.50%)ENTG Entegris, Inc. 79.34 -13.41 (-14.46%)Most activeSOFI SoFi Technologies, Inc. 21.87 -0.53 (-2.37%)NVDA NVIDIA Corporation 179.27 +3.76 (+2.14%)LCID Lucid Group, Inc. 2.5000 -0.0600 (-2.34%)TSLA Tesla, Inc. 319.04 -2.16 (-0.67%)AAL American Airlines Group Inc. 11.51 +0.09 (+0.79%)Earnings eventsTrending tickersWING Wingstop Inc. 368.26 +77.96 (+26.85%)NVDA NVIDIA Corporation 179.27 +3.76 (+2.14%)FCX Freeport-McMoRan Inc. 39.13 -4.10 (-9.48%)MRVL Marvell Technology, Inc. 81.74 +5.40 (+7.07%)PTON Peloton Interactive, Inc. 7.34 +1.16 (+18.77%)Top economic events