I Asked ChatGPT: What Are the Worst Retirement Mistakes People Make?

Core Insights - Retirement planning can be complex and overwhelming, leading to costly mistakes without professional guidance [1][2] Group 1: Common Retirement Planning Mistakes - Claiming Social Security too early can result in a smaller benefit for life; delaying benefits until age 70 can increase the amount by 8% per year [3] - Ignoring taxes on Social Security can lead to taxation on up to 85% of benefits if other income sources are present; working with a financial advisor is recommended to manage withdrawals [4] - Failing to take required minimum distributions (RMDs) by age 73 from tax-advantaged accounts can incur an excise tax; automatic withdrawals can help mitigate this risk [5] Group 2: Medicare and Tax Considerations - Missing Medicare enrollment can result in a 10% penalty for each year of delay, increasing monthly costs; staying informed about enrollment windows is crucial [6] - Triggering Income-Related Monthly Adjustment Amount (IRMAA) taxes can occur from significant income spikes; spreading income across multiple years can help avoid extra charges [7]