Five risks that can rapidly erode US retirees’ nest eggs
A Moneywise article published by Yahoo Finance highlights healthcare, housing, fraud, spending and Social Security decisions as key threats to US retirement savings.
US retirees face five risks that can quickly reduce their savings: underestimated healthcare and long-term-care costs, housing expenses and repairs, fraud, excessive early spending or family support, and poorly timed Social Security claims.
A Moneywise article published by Yahoo Finance cites Fidelity data estimating healthcare and medical expenses of about US$185,500 for a 65-year-old retiring without workplace benefits. The estimate includes Medicare premiums and related costs, but excludes most dental care, over-the-counter medicines and long-term care. A US Department of Health and Human Services projection puts average lifetime long-term-care costs at US$120,900 for someone turning 65.
Housing can also place pressure on retirement budgets. The article says 28% of US households headed by someone aged 65 or older spent more than 30% of gross income on housing costs in 2025. Mortgage or rent, insurance, utilities, taxes, routine repairs and accessibility renovations can all add to expenses, including for homeowners who have paid off their mortgages.
Fraud presents another threat. The Federal Trade Commission reported US$2.4 billion in fraud losses among people aged 60 and over in 2024, up from US$600 million in 2020. Investment scams were identified as the largest source of losses among older adults, alongside romance, technology-support and government-impersonation scams.
The article also warns that large early-retirement purchases or financial support for adult children and grandchildren can strain savings. It cites a median household income of US$59,680 for households headed by someone over 65 in 2025, while a BMO survey found that 48% of parents and 41% of grandparents planned to provide financial assistance to adult children last year.
Social Security timing is the fifth risk. Benefits can be claimed from age 62, but claiming before the full retirement age of 67 can permanently reduce payments by up to 30% for those turning 65 in 2026 or later. Delaying claims until age 70 can increase benefits by up to 24% compared with claiming at full retirement age. The figures and guidance relate to the US system and are not financial advice.
