6 Retirement Warning Signs to Know Now

Are You Really Ready for Retirement? 6 Warning Signs You Might Not Be

Many Americans think they're ready for retirement—until they’re already in it. That’s when the cracks begin to show: shrinking savings, higher taxes than expected, volatile markets, rising healthcare costs, and the harsh realization that “hoping for the best” was never a plan.

The truth is simple but uncomfortable: most people are not prepared for retirement because they spend decades working toward it but only a few hours actually planning for it. According to national statistics, large portions of adults over 55 have no substantial savings, no tax strategy, no lifetime income plan, and no method to protect themselves from the next market downturn.

Retirement is not something you drift into. It’s something you design—carefully, intentionally, and with a strategy that protects your money for as long as you need it.

In this guide, we’ll walk through 6 critical warning signs that signal you may not be ready for retirement—and what you can do right now to fix them.

1. You Don’t Have a Complete Retirement Checklist (Tax-Advantaged Accounts + Growth + Strategy)

Your retirement plan is only as strong as the systems behind it. And most people only have pieces of a plan—like a 401(k) at work or a small IRA—but no overarching strategy tying everything together.

A complete retirement readiness checklist should include three core areas:

Tax-Advantaged Accounts

If you don’t know how your retirement accounts will be taxed later, you could lose thousands—sometimes hundreds of thousands—in unnecessary taxes.

Common tax-advantaged tools include:

• Traditional IRA – tax-deferred growth
  
  
• Roth IRA – tax-free withdrawals
  
  
• Employer 401(k) – tax-deferred with employer match
  
  
• 403(b) & 457 plans – for teachers, public servants, medical workers
  
  
• IUL (Indexed Universal Life) – tax-free withdrawals when structured correctly
  
  
• Annuities – tax-deferred growth with protected income options
  
  

Most people have no idea which bucket they will pull from first, how withdrawals affect Medicare premiums, or how taxation impacts Social Security income.

A retirement plan is not just having accounts—it’s knowing how they work together.

Investments With Long-Term Growth Potential

Retirement isn’t just about accumulating savings. It’s about making sure those savings:

• grow
  
  
• sustain inflation
  
  
• last 20–30+ years
  
  
• remain protected during market downturns
  
  

If your accounts are sitting in overly conservative positions too early, you may lose decades of growth. If they’re too aggressive later, you risk losing everything right before retirement.

You need a balance—growth when you need it, protection when it matters.

A Real Strategy — Not Just “Savings”

A well-built plan includes:

• How much income you’ll need each month
  
  
• What accounts you’ll withdraw from first
  
  
• How to reduce taxes in retirement
  
  
• How to avoid running out of money
  
  
• How to protect your spouse or children
  
  
• When to take Social Security
  
  
• How to handle long-term healthcare needs
  
  

If you don’t have a structured strategy covering these areas, that’s a big red flag you’re not retirement-ready.

If you want to review how retirement accounts work, check out our internal guide on Traditional IRAs, our article on living benefits, and our breakdown of 401(k) planning mistakes — all available on the Russell Financial Solutions website.

2. You Aren’t Using Products That Protect Against Market Volatility and Inflation

Retirement planning isn’t just about seeking high returns—it’s about balancing growth with protection.

Inflation, recession cycles, and market downturns can all reduce the value of your nest egg. If your entire portfolio depends on the stock market to survive, that’s a dangerous position.

Here are the types of products that help protect your money while still offering growth potential:

Fixed Indexed Annuities (FIAs)

FIAs are one of the most powerful retirement tools because they:

• Protect principal from market losses
  
  
• Provide growth through index strategies
  
  
• Offer optional lifetime income riders
  
  
• Hedge against sequence-of-return risk
  
  
• Can create a personal pension for life
  
  

These products are used by banks, corporations, and even governments as part of their long-term reserve strategy—and most consumers don’t even know they exist.

Indexed Universal Life Insurance (IUL)

IULs are not traditional life insurance—they are advanced financial tools that offer:

• Tax-free growth
  
  
• Tax-free withdrawals (when structured properly)
  
  
• Market-linked returns with zero downside exposure
  
  
• Living benefits
  
  
• Legacy protection for your family
  
  

Many high-income earners and business owners use IULs as part of their retirement income strategy for a reason—they protect against volatility and taxes.

Cash Reserve Strategies

A strong emergency bucket gives you liquidity in case you need to:

• cover unexpected medical bills
  
  
• buy a car
  
  
• help a family member
  
  
• bridge income during a downturn
  
  

Cash reserves act as a financial buffer that prevents you from touching long-term investments too early.

Inflation-Resistant Tools

Your retirement income must grow as the cost of living rises. Products like:

• inflation-adjusted annuities
  
  
• dividend-paying funds
  
  
• IUL policies with increasing death benefit options
  
  
• real assets or alternatives
  
  

help ensure your dollar maintains its value as prices rise.

If your current retirement plan doesn't include protection + growth, you may be unknowingly risking your future stability.

3. You Haven’t Prepared for the Retirement Red Zone (Age 60–70)

The years between age 60 and 70 are the most financially vulnerable period of your entire life.

This period is called the Retirement Red Zone—and it’s not an exaggeration to say that one bad financial decision during these years can permanently damage your retirement, even if you spend decades saving.

Here’s why:

You Have No Time to Recover From a Market Crash

If you’re 63 and the market drops 30–40%, you don’t have 10–15 years to wait for it to recover. Many people who retired before the 2008 crash were forced back into the workforce or lost millions in retirement income because they were overexposed to the market during the Red Zone.

Sequence-of-Returns Risk

This is one of the least understood—but most dangerous—retirement risks.

It means:

If you start withdrawing from your retirement accounts during a down market, you permanently reduce the long-term value of your portfolio.

Even if the market eventually recovers, the damage is often irreversible.

4. You Need Stable Income To Replace Your Paycheck

During the Red Zone, you transition from accumulation to distribution. If you don’t have guaranteed income streams—such as annuities—you may be relying too heavily on volatile investments to fund your monthly expenses.

Healthcare Costs Begin To Rise

Premiums, prescriptions, medical deductibles, and unexpected procedures become more common. Without a plan, these costs can quickly drain retirement assets.

The Window To Reduce Taxes Is Closing

Once Required Minimum Distributions (RMDs) begin, taxes can no longer be delayed. Your Red Zone years are the last chance to reposition assets strategically.

This is why tools like indexed annuities, IULs, and structured income plans are so important—they protect your life savings during the years when you are most exposed to risk.

If you want to learn more about how retirement products work, visit our internal article on indexed investment strategies, as well as our guides on debt-free planning and financial clarity on the Russell Financial Solutions website.

You Haven’t Calculated Your Retirement Income Gap

Many retirees think they have “enough money” simply because they’ve hit a certain savings number—$300,000, $500,000, or even $1 million.

But the real question is:

How much guaranteed income will that savings produce?

Most Americans overestimate how far their savings will go.

A true retirement plan calculates:

• Monthly expenses
  
  
• Health-related costs
  
  
• Travel or lifestyle spending
  
  
• Taxes on withdrawals
  
  
• Social Security income timing
  
  
• Emergency needs
  
  
• Required Minimum Distributions
  
  

When retirees fail to calculate this gap, they often run out of money in their later years.

5. You’re Not Actively Reducing Taxes in Retirement

Taxes are one of the biggest threats to your retirement income. Most retirees are shocked when they learn:

• Up to 85% of Social Security can be taxed
  
  
• 401(k) withdrawals are fully taxable
  
  
• RMDs can push you into a higher tax bracket
  
  
• Medicare Part B premiums rise if your income is too high
  
  
• Estate taxes can impact your children’s inheritance
  
  

Tax planning is not optional—it’s essential.

Strategies may include:

• Roth conversions
  
  
• Tax-free IUL withdrawals
  
  
• Using annuities for predictable income
  
  
• Managing Social Security timing
  
  
• Distributing taxable assets strategically
  
  

A tax-efficient retirement is a long-lasting retirement.

6. You Don’t Have a Plan for Long-Term Care or Healthcare Inflation

Healthcare is one of the largest expenses retirees face, and it can quickly drain savings.

A solid retirement plan includes:

• Long-term care protection
  
  
• Living benefits
  
  
• Critical illness protection
  
  
• Chronic illness riders
  
  
• Inflation-adjusted income
  
  
• Emergency healthcare funds
  
  

Failing to plan for healthcare is one of the most common—and costly—retirement mistakes.

Final Thoughts: Retirement Readiness Takes Planning, Not Guessing

Retirement should be a time of freedom—not fear.
But freedom doesn’t happen by chance. It happens by design.

If any of the warning signs above resonated with you, you’re not alone. The majority of adults feel unprepared for retirement because they never received the proper education, tools, or strategic guidance.

That’s exactly what Russell Financial Solutions provides:

• A personalized retirement strategy
  
  
• Access to top non-captive providers
  
  
• Protection against volatility
  
  
• Tax-efficient planning
  
  
• Guaranteed income options
  
  
• Legacy and wealth-building solutions
  

Do you want to know how to carefully plan your retirement?

Contact Russell Financial Solutions today.