We’ve all made decisions we wish we could take back. When it comes to retirement, even minor missteps can have lasting consequences. That’s why it’s helpful to understand the most common retirement planning mistakes ahead of time.

Retiring in the Harrisburg area comes with unique considerations—from rising healthcare expenses and evolving tax rules to shifting income needs across communities like Hershey, Halifax, Lancaster, Lebanon, Enola, and Mechanicsburg.

At 1st Choice Financial Services, Inc., our team of retirement planning specialists in Central Pennsylvania recognizes the financial realities facing pre-retirees in the region. We’re here to help you sidestep avoidable mistakes and build a strategy designed to last.

This blog highlights five common mistakes to watch for when doing your retirement planning in Pennsylvania.

Mistake #1: Underestimating Healthcare Costs in Retirement

Many pre-retirees assume their medical expenses will remain steady or that Medicare will cover nearly everything. In reality, healthcare can become one of the largest expenses in retirement. 

According to one estimate, a 65-year-old retiring today could spend around $165,000 on healthcare. If these potential costs aren’t factored in, they can eat into savings faster than expected.

You can better prepare by reviewing Medicare coverage options, estimating annual out-of-pocket costs, and accounting for long-term care needs. If you’re still working and your employer’s specific plan allows, consider exploring a Health Savings Account (HSA), which offers tax advantages when used for qualified medical expenses.

Mistake #2: Not Having a Clear Retirement Budget

Without a realistic retirement budget, it’s easy to overspend—or to underspend and miss out on the experiences you’ve worked hard for. Planning for your retirement income needs starts with understanding your spending habits today and thinking about how they might shift in the years ahead. 

Begin by separating your needs—like housing, food, and insurance—from your wants, such as travel, hobbies, and dining out. This simple step can help clarify where your money goes and how much flexibility you’ll need.

It’s helpful to look at what your lifestyle looks like now versus what you expect it to be during retirement. Will you move? Support family? Downsize? If you’re married, talk openly about your vision for retirement to make sure your budget reflects shared goals.

Consider using budgeting tools or working with a seasoned retirement advisor in Harrisburg, PA—like those at 1st Choice—to help you track expenses and plan for everything from housing and hobbies to rising utility costs in Central PA.

Mistake #3: Overlooking Inflation’s Impact on Savings

Inflation has dominated headlines in recent years, and for good reason. In the past, its effects on retirement savings were often underestimated. However, what seems like a sufficient nest egg today may not stretch as far in 10 or 20 years, especially for retirees living on fixed income sources.

Even moderate inflation can steadily reduce the value of your money over time, impacting your ability to cover rising living costs.

To help manage this, consider different asset allocations or investment models that aim to grow your wealth in real terms, accounting for inflation. Diversifying your investments and reviewing your portfolio regularly can help you stay prepared.

Partnering with an advisor experienced in wealth management for Harrisburg residents may help you build a strategy that balances income, growth, and preservation as your needs shift over time.

Mistake #4: Failing To Consider All Income Sources

Focusing only on your 401(k) or IRA may leave potential income untapped. In reality, most retirees draw from a mix of sources.

Social Security remains a key income stream, but the timing of when you claim benefits can make a difference. You may be able to maximize your benefit by delaying, coordinating with a spouse, or considering survivor options.

Other possible income sources include pensions, annuities, rental properties, and part-time work. Even modest income from consulting, seasonal jobs, or a hobby business can add flexibility to your plan.

A retirement plan that accounts for multiple income streams may help reduce risk and give you more control over your finances, especially when unexpected expenses arise.

Mistake #5: Neglecting Estate Planning and Legacy

It’s never easy to think about one’s passing, but not having an estate plan can leave loved ones in a difficult position. A lack of clear instructions may lead to delays, legal challenges, or unintended outcomes.

Creating or reviewing key documents, such as a will, living trust, healthcare directives, and power of attorney, is a meaningful way to protect your family.

Some legacy planning tools, like donor-advised funds (DAFs) or qualified charitable distributions (QCDs) from your IRA, may offer tax advantages while helping you fulfill charitable goals as part of your broader financial strategy.

How an Independent Retirement Advisor Can Help

Avoiding common retirement mistakes often comes down to having the right guidance. Working with a knowledgeable professional—especially one who understands your local community—can help you make smart decisions about your future.

As a team of experienced retirement advisors for Central Pennsylvania, 1st Choice Financial Services, Inc., is an independent advisor firm headquartered in Camp Hill that provides comprehensive financial solutions to clients in Harrisburg, Hershey, Halifax, Lancaster, Lebanon, Enola, Mechanicsburg, and surrounding communities.

Our local roots allow us to tailor guidance to the realities of retirement planning in Pennsylvania, including state-specific tax rules, cost-of-living variations, and healthcare resources. And because we’re an independent firm, we offer strategies that reflect your goals, not a product quota.

Our retirement advisors are held to a fiduciary standard, meaning we’re committed to acting in your best interest at all times. This standard reflects our duty of loyalty and care, and reinforces our focus on helping you make thoughtful, well-informed financial moves.

Our services include:

• Personalized guidance: We take time to understand your vision, priorities, and financial picture.
• Comprehensive planning: From income strategies and investment allocation to Medicare and estate planning support.
• Ongoing support: Retirement isn’t a one-time event. We’re here to help you adapt your plan as life evolves.

Whether you’re just getting started, trying to catch up, or reviewing your plan before retirement, we can provide the clarity and structure you need to move forward with confidence.

Don’t let common pitfalls derail your retirement dreams.

Reach out today—we can’t wait to meet you!

The commentary on this blog reflects the personal opinions, viewpoints and analyses of the author, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

This is not endorsed or affiliated with the Social Security Administration or any U.S. government agency.

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