You Didn’t Factor Fees

Apart from inflation, taxes and healthcare costs, fees on investments and retirement accounts can also affect your nest egg. In many situations, the fees are higher than expected. For example, if you have $100,000 in a retirement account and terms of 2.5% over 30 years, you could end up paying about $40,000 more in fees during that period than if the fees on your account had been 1.5%.

“This could ultimately take a huge chunk out of your retirement savings over a long period of time,” Hardy said.

What To Do

It’s always good to be informed, so verify your retirement account statements to figure out what fees are being charged. If the fees are too high, it might be a good idea to switch to something more budget-friendly.  “We advocate for the average investor to have a passive, low-cost retirement portfolio to protect from the loss of value over time from fees,” Hardy said.