Frequently Asked Questions

What is the most common reason retirees run out of money?

Unexpected healthcare and long-term care costs are the primary culprits. Standard Medicare does not cover nursing home care, and out-of-pocket medical expenses can rapidly deplete a portfolio if not properly planned for.

How much of my portfolio is safe to withdraw each year?

The traditional “4 percent rule” suggests withdrawing 4 percent of your portfolio in the first year and adjusting for inflation thereafter. However, current economic conditions and longer life expectancies lead many experts to recommend a more conservative withdrawal rate closer to 3.5 percent.

Can I work while collecting Social Security?

Yes, but if you claim benefits before your Full Retirement Age (FRA) and continue working, your benefits will be temporarily reduced if you earn over a specific annual limit. Once you reach FRA, you can earn any amount without facing an earnings penalty.

Entering retirement requires diligence, clear communication with your loved ones, and a willingness to adapt as circumstances evolve. Take an inventory of your current financial and emotional readiness, address the gaps, and build a strategy that protects both your wealth and your well-being. This is educational content based on general retirement and financial principles. Individual results vary based on your situation. Always verify current benefit rules, tax laws, and eligibility requirements with official sources like SSA, Medicare.gov, or the IRS.

Last updated: March 2026. Retirement benefits, tax rules, and healthcare regulations change frequently—verify current details with official sources.