3 critical mistakes that can wipe out nest eggs of $1,000,000 or more. Is your life savings currently at risk?

Here are three critical mistakes that millionaire retirees make that can jeopardize their financial security.

1. Not planning for long-term care

Although every senior wants to stay in their own home and maintain independence as long as possible, the harsh reality is the aging process can make this unrealistic beyond a certain point.

Roughly 75% of seniors over age 50 told AARP they would prefer to age in place, but 44% admitted a reluctant move may be inevitable (1). This inevitability, coupled with the rising long-term care costs, makes it a silent wealth killer.

As of January, 2026, the median cost of a private room in a nursing home is $376 per day, or $11,294 per month, according to Senior Living (2). That’s a six-figure annual expense that can quickly drain your finances if unplanned. In high-cost cities or when covering a partner’s long-term care, costs can escalate even faster.

With this in mind, most seniors should plan and budget for long-term care to preserve financial security in retirement.

2. Not planning for cognitive decline

It’s easy to take your mental acuity for granted. When planning for retirement, you’re probably still at the peak of your abilities and can’t imagine a day when you might struggle to make basic financial decisions independently.

Unfortunately, cognitive decline affects many seniors. Researchers at Wharton University followed a group of seniors with the average age of 81 and found a 12% decline in financial literacy scores over 12 years (3). In other words, your ability to make good financial choices can gradually diminish with age.

What makes this especially concerning is that cognitive decline often occurs without obvious early signs. It can creep up gradually, altering how you make crucial decisions before you or your loved ones notice.

The result is more investment mistakes, overpayments to caregivers, missed bills and increased vulnerability to scams. One bad tax decision or investment scam can quickly deplete a seven-figure portfolio.

Consider delegating some financial tasks to a trusted family member beyond a certain age. You can also consult an expert or professional advisor for a second opinion, even on routine financial decisions. Alternatively, consult a lawyer to discuss legal protections, such as living trusts or powers of attorney.

3. Overlooking slow-leak spending habits

Most retirees don’t spend their wealth on yachts or luxury watches. Instead, they gradually lose it through uninteresting and often overlooked expenses.

Lifestyle creep, financial support for adult children, or a habit of frequent sports betting can silently drain your finances.