Skip This Simple Habit After 40 and Risk Running Out of Money

If you’re 45, 50, or even 60, and you haven’t done this one simple thing yet, you could be costing yourself thousands of dollars down the line. It’s not flashy. It doesn’t involve buying the latest investment product or following some viral TikTok finance hack. But it is simple—and shockingly, most Americans over 40 skip it.

The “I’m Covered” Assumption

Let’s start with a story. Janet, 52, always thought she was “covered” because she had Medicare and a couple of retirement accounts. She never sat down to think about how long she might live—or what healthcare would actually cost in her 70s and 80s.

Sound familiar? You’re not alone. Many Americans assume that Medicare or employer coverage solves the problem. Others rely on Social Security projections and feel like they’ve done enough.

Here’s the problem: longevity is increasing, and healthcare costs are rising faster than inflation. Research by the Nationwide Retirement Institute and The American College of Financial Services shows that extending retirement by just five years—say, from 30 to 35 years—can increase your risk of running out of money by 41%. And according to NASDAQ, 76% of Americans underestimate their medical care costs in later life.

That’s a recipe for a financial shock you can avoid—if you take action now.