4 Retirement Planning Mistakes to Avoid in 2025

Retirement planning isn’t something you want to get almost right. A small misstep today could mean years of financial stress down the road. And in 2025, with shifting economic conditions, new tax laws, and increasing longevity, planning wisely has never been more critical.

At LaTour Asset Management, we’ve seen the same mistakes trip up retirees again and again—mistakes that can cost them security, peace of mind, and thousands of dollars in lost income. The good news? You don’t have to make them. Here’s what to avoid if you want a financially stable, stress-free retirement.

1. Underestimating How Long You’ll Live

A generation ago, retirement meant planning for 10 or 15 years. Now? Many retirees will need to fund 25 to 30+ years of expenses. Medical advances are extending lifespans, but many people still plan as if they’ll only live to 80. The problem? If you outlive your savings, Social Security alone won’t be enough. We can help you avoid that situation by:

• Planning for a retirement that lasts until at least age 95.
• Planning steady income streams that won’t run dry.
• Considering long-term care planning early—because healthcare costs don’t shrink as you age.

2. Over-Reliance on Social Security

Social Security was never designed to be a primary income source in retirement. Yet too many people assume it will be enough. The reality, though, is that the average monthly benefit is around $1,976—barely enough to cover basic expenses, let alone a comfortable lifestyle. Here’s what to do instead:

• Treat Social Security as a supplement, not your foundation.
• Have multiple income streams—IRAs, 401(k)s, annuities, and other investments.
• Get expert advice on when to claim benefits—waiting until 70 can increase your monthly check by 77%, compared to claiming at 62.

3. Ignoring Inflation’s Impact

Prices don’t stay the same, and your retirement budget shouldn’t either. The cost of housing, healthcare, and everyday essentials keeps rising—even when markets are down. If you’re not adjusting for inflation, you’re setting yourself up for financial strain. You should:

• Make sure your retirement income plan accounts for at least 3% annual inflation.
• Factor in rising healthcare costs—Medicare doesn’t cover everything, and long-term care can cost over $100,000 per year.

4. Paying More Taxes Than Necessary

One of the biggest retirement mistakes? Not planning for how and when you withdraw your money. If you don’t have a tax strategy, you could end up paying thousands more in taxes than you need to. We can help you:

• Use Roth conversions strategically—pay taxes now, so you don’t get hit later when rates may be higher.
• Diversify your income sources between taxable, tax-deferred, and tax-free accounts.
• Minimize tax burdens—mistimed withdrawals can trigger steep tax bills.

Retirement Planning Isn’t a DIY Job. We’re Here to Help

There’s no room for guessing when it comes to your future. The difference between a stable retirement and one filled with stress often comes down to expert guidance and strategic planning.

LaTour Asset Management in Springfield works tirelessly to make sure you avoid these costly mistakes and create a retirement strategy that works for you. Call us today at (877) 888-5724 and start building a plan that gives you confidence—not uncertainty.