Retirees watch out: 5 ‘hidden’ retirement misfires millions of American seniors overlook. Which ones did you miss?

However, these posts often focus on the positives, which can make it appear as though they have more money than they actually do. They can also make you feel far behind, regardless of where you are in your retirement journey.

The reality isn’t much better. Almost 20% of American retirees say they’re “struggling” financially, according to Schroder’s 2026 Retirement Survey. And tellingly, especially for those who are still figuring out their retirement, 64% of those surveyed wished they had done more planning before retiring.

Here are a few signs that may indicate the people you know are actually broke, or that you could be headed down a similar path — plus a few ways to get back on track.

1. Confusing income with wealth

One mistake people make all the time is figuring that because they earn a lot, they can afford to spend a lot. In reality, if you don’t keep any of your income, you’re going to end up broke.

Almost one third of households making between $100,000 and $200,000 per year were also living paycheck to paycheck, according to reporting by Goldman Sachs. Top earners fare even worse, with 41% of those making between $300,000 and $500,000 claiming to live paycheck to paycheck.

Part of this may be due to the way Goldman Sachs frames things, however. The survey defined those living “primarily paycheck to paycheck” in relation to “long-term financial goals.” If these goals are lofty, then the why behind just how far a pay stub stretches can change dramatically compared to someone making between $50,000 and $100,00 a year.

Regardless, This is the core of a common problem for both high-earners and those moving up in the world: lifestyle creep.

Most financial advisors recommend resisting the urge to ramp up your spending with your income. Instead, socking away the difference into either investments or savings is considered best practice for long term financial wealth. And the first step for most people is to get an emergency fund together with three to six months’ worth of living expenses.

A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s 10 times the national deposit savings rate, according to the FDIC’s August report.

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

Regardless of your financial situation, a common first step towards financial security is developing a well-stocked emergency fund.

2. Spending on brand names

It’s okay to splurge on a quality item from time to time, especially if it’s something that helps you earn money, like a laptop you use for your job. But if you feel compelled to only buy brand names — and the fanciest ones at that — you’re more likely to end up in a bad place financially.

This may be why total U.S. household credit card debt has hit $1.26 trillion, according to the Federal Reserve Bank of New York. Auto loan balances are also increasing steadily, now at $1.71 trillion.

If you want to avoid becoming broke, don’t buy things — whether it’s a car, a house or clothing — with the goal of showing off. Instead, buy things with the goal of addressing your needs as economically as possible.

If you find it difficult to stop overindulging, you can start by building savings habits into everyday spending. With Acorns, you can automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at leading investment firms like Vanguard and BlackRock.

For instance, if you buy a donut for $3.25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. So a $3.25 purchase automatically becomes a 75-cent investment in your future.

Sign up today and get a $20 bonus investment.

3. Abandoning financial discipline

People who are secretly broke tend to give in to impulse purchases rather than planning and budgeting. Worse yet, they tend to use credit cards to fund impulse purchases, driving themselves even deeper into debt — see those numbers from the Federal Reserve Bank of New York.

While occasional impulse buys may not break the bank, making a habit of them can seriously harm your finances. Instead, focus on budgeting and being intentional with your spending.

Budgeting can be challenging, especially when trying to track multiple accounts, shopping and daily expenses simultaneously.

Monarch Money puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs to avoid overspending, or identify regular line items you may be overpaying for — such as insurance.

And the best part? Monarch Money offers a seven-day free trial so you can see if it’s right for you. If you like what you see, you can then snag 50% off your first year with code WISE50.

4. Chasing quick retirement schemes

There are certain tried and true methods of growing wealth over time. These include buying a home and seeing its value increase, investing in stocks and holding them for decades, and putting money into bonds for slower but stable returns.

Chasing get-rich-quick schemes, on the other hand, is a good way to end up with less money rather than more.

Even short-term stock investments can be risky, as it often takes time for stocks to increase in value. And, in some cases, swift growth can be a sign of an incoming correction. So, instead of trying to make a quick buck, focus on ways to slowly but consistently grow your net worth, such as contributing to your employer’s 401(k) every month and investing for long-term growth.

One way to invest for the long-term — aside from using ETFs as discussed earlier — is to make sure you get expert advice before you start picking stocks.

Moby offers professional research and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.