Retirees: These 7 Money Mistakes Could Be Costing You Thousands Per Year

After decades of building your nest egg, rising costs, changing Social Security rules, and low-yield accounts can erode your financial comfort if you’re not proactive.

Luckily, a few well-timed tweaks can help protect your money and maximize what you have. These simple changes can keep your income steady, stretch your savings, and add hundreds -- or even thousands -- of extra dollars each year.

Mistake #1: Navigating your $100K+ portfolio without expert guidance — and missing critical tax strategies

Once your portfolio crosses the six-figure mark, the stakes get higher. Even small mistakes can cost you thousands.

Studies show people who work with a financial advisor could end up with about 15% more money in retirement on average. Over a 30-year retirement, that could mean hundreds of thousands of dollars in extra spending power.

An advisor can help you optimize asset allocation, tax strategy, withdrawals, Social Security timing, and more — especially if you’re planning for healthcare, travel, or legacy goals.

The key is using a fiduciary advisor, which are legally required to act in your best interest (not all advisors are).

We like this tool from SmartAsset which connects you with up to 3 vetted fiduciary advisors in your area. No cost, no pressure — just a quick call to see if expert help is right for you.

Mistake #2: Underestimating how credit card interest can drain your nest egg

In retirement, credit card debt is especially risky. With a fixed income and rising costs, 20%+ interest rates can quietly drain thousands from your savings -- and fast. If this isn’t something you’re dealing with, great -- skip to Mistake #3. But if you’re feeling the burden of credit card debt, paying it off should be your top priority.

The good news? A balance transfer card can give you the space to finally make real progress.

The fix: The Wells Fargo Reflect® Card gives you 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (then 17.24%, 23.74%, or 28.99% Variable APR. rates and fees). That’s by far one of the longest interest-free periods available today.

Move your debt to this card and you’ll get nearly 2 full years interest-free where every dollar goes directly toward eliminating your debt, not to the bank.

And the best part? There’s no annual fee. You can learn more and apply here.

Mistake #3: Letting your bank keep $340+ of your money each year (and not spending 5 minutes to fix it)

Many retirees keep a healthy emergency fund. But most regular banks pay next to nothing in interest -- often .01% APY -- and they’re counting on you not paying attention.

Look at what $10,000 earns in different accounts:

Traditional bank account (0.01% APY): $1 per year
High-yield savings account (3.50% APY): $350 per year
Difference: $349 per year

And if you have more than $10k in savings, the gains are even bigger.

The solution is simple: move your money to a high-yield account like American Express® High Yield Savings Account (Member FDIC) at 3.50% APY where you’ll earn 8X the national average interest rate. Plus, your money is FDIC-insured up to $250,000.

It’s not an exaggeration to say this 5-minute move could earn you thousands of dollars over the next few years -- you can open your account here.

Mistake #4: Overlooking guaranteed income from CDs

In retirement, stability matters -- and few tools offer more predictability than certificates of deposit (CDs). Yet many retirees leave this low-risk option on the table.

CDs deliver guaranteed returns with zero market exposure. By building a CD ladder, you can create a steady stream of income that helps cover essentials -- without dipping into your principal.

Take Synchrony Bank, for example. Its Online CDs offer an astounding 4.25% APY on a 15-month term. That’s a strong, fixed return for anyone who wants their money working without stress. Take a look at Synchrony Bank's CD rates and start saving today.

Mistake #5: Overpaying by $400+ every year for car insurance

You’ve probably noticed your car insurance premiums have skyrocketed over the past few years.

Insurance companies love loyal customers -- because they can quietly raise your rates while offering discounts to new customers. Many drivers are overpaying by $400-$1,000 annually without realizing it.
The simple fix: A 2-minute comparison could save you hundreds. This free tool shows you exactly how much you're overpaying:

Enter your ZIP code
Answer a few quick questions
See if you’re overpaying and switch if you want to

Worst case? You stick with what you have. Best case? You save hundreds with almost no effort. Either way, it’s worth a 2-minute check.

Mistake #6: Relying only on cash -- and missing out on long-term stock growth

Playing it too safe in retirement can backfire. While CDs and savings accounts protect your money, they may not outpace inflation or support a long retirement.

That’s where The Motley Fool’s Stock Advisor comes in. Created by our parent company over two decades ago, Stock Advisor has helped millions of Americans build real wealth. Over 20+ years its stock picks have averaged 994% returns compared to just 172% for the S&P 500.

It’s easy to follow: You’ll get 10 “best buy” stocks today, 2 new picks each month, full research reports, and access to all past recommendations. Plus, access to exclusive retirement planning content through GamePlan, and much more.

And it’s backed by a 30-day money-back guarantee when you sign up here.

Mistake #7: Using the wrong card for everyday spending? You could be missing $800+

If you're using cash, debit cards, or just a basic credit card for your everyday spending, you could be missing out on $500-$1,000 in cash back every year.

You're spending money anyway -- why not get rewarded for it?

The Discover it® Cash Back card (see rates and fees) is our top pick -- in fact, more of our experts use it personally than any other card.

Here’s why it stands out:

Discover will match all the cash back you’ve earned at the end of your first year. Earn $400? They'll turn it into $800.
Earn 5% cash back on purchases in rotating categories each quarter, on up to the quarterly maximum when you activate — that's one of the best cash back rates available.
Long 0% intro APR period until well into 2026 on both purchases and balance transfers (then a 18.24% - 27.24% Variable APR applies).
$0 annual fee

Bottom line: This card could put $800+ back in your pocket this year, and it takes just 3 minutes to apply using this link (see rates and fees).

Bottom line

Retirement doesn’t come with a playbook, but avoiding just a few common missteps could help you unlock thousands of dollars in savings, income, and peace of mind every year.

From reducing high-interest debt to earning more on your cash, trimming unnecessary expenses, and generating steady income through guaranteed returns or dividend-paying stocks — these are smart, low-effort moves that can make your money last longer.

The key is being proactive. The sooner you act, the more flexibility, income, and confidence you’ll have in your retirement years.

The most important first step?

Using an advisor to help you optimize asset allocation, tax strategy, Social Security timing, and more. Start today with this tool from SmartAsset to connect with up to 3 vetted fiduciary advisors in your area.

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