As a high-earning professional in Ohio—whether you're a physician in Cleveland, an engineer in Akron, or an executive in Columbus—you've worked hard to build a successful career. But when it comes to retirement planning, even smart professionals can overlook key details that impact their financial security.
In 2026, with ongoing discussions about federal tax changes, rising healthcare costs, and Ohio's unique state tax rules, avoiding common pitfalls is more important than ever. Many Ohio professionals assume their high income will carry them through retirement, only to face surprises like higher taxes or inadequate savings.
Drawing from years of working with local clients, here are the five most common retirement planning mistakes I see—and practical steps to fix them. Addressing these early can help you build a more confident, protected retirement.
Mistake #1: Underestimating Ohio State Taxes on Retirement Income
Ohio taxes most retirement distributions differently than many states. While Social Security benefits are generally exempt, withdrawals from 401(k)s, IRAs, and pensions are fully taxable at state rates (up to 3.5% in 2026, depending on income brackets). Many professionals don't account for this when projecting retirement needs.
Why it hurts: A $100,000 IRA withdrawal could trigger thousands in unexpected state taxes, reducing your spendable income.
How to fix it:
- Prioritize Roth conversions or Roth 401(k) contributions for tax-free growth and withdrawals.
- Use tax-efficient withdrawal strategies (e.g., draw from taxable accounts first).
- Consider Ohio's retirement income credit if eligible (up to $200 per person for certain pensions/annuities).
- Work with a fiduciary advisor familiar with Ohio rules to model tax scenarios.
Mistake #2: Not Maximizing Tax-Advantaged Accounts Early Enough
Busy professionals often contribute just enough to get an employer match, missing opportunities to supercharge savings. In 2026, contribution limits remain valuable tools: $23,500 for 401(k)s (plus $7,500 catch-up if 50+), $7,000 for IRAs (plus catch-up).
Why it hurts: Delaying max contributions means missing years of compound growth—potentially hundreds of thousands less in retirement.
How to fix it:
- Automate maximum contributions, especially to Roth options if your income allows.
- For high earners phased out of direct Roth IRAs, use the "backdoor Roth" strategy.
- Explore mega backdoor Roth if your plan allows after-tax contributions.
- If self-employed or a business owner, consider SEP-IRAs or solo 401(k)s for even higher limits.
Mistake #3: Over-Reliance on Social Security and Employer Pensions
Many Ohio professionals assume Social Security will cover a big chunk of retirement—or that a traditional pension will suffice. But full Social Security benefits may not start until age 67, and average benefits replace only about 40% of pre-retirement income. Pensions are increasingly rare in private sectors.
Why it hurts: Inflation, longer lifespans (Ohioans often live into their 80s-90s), and potential future benefit adjustments can leave gaps.
How to fix it:
- Claim Social Security strategically (delaying to 70 boosts benefits ~8% per year).
- Build diversified income streams: annuities for guaranteed income, dividend stocks, or rental properties.
- Stress-test your plan for longevity—aim for savings that can support 25-30 years in retirement.
- Protect against risks with disability or long-term care coverage to preserve savings.
Mistake #4: Poor Diversification and Ignoring Risk as You Age
Some professionals chase aggressive growth forever, while others stay too conservative. In volatile markets, lacking proper asset allocation can erode savings.
Why it hurts: Too much stock exposure near retirement risks big losses; too little growth fails to outpace inflation and Ohio's rising living costs (healthcare, property taxes).
How to fix it:
- Use age-based rules as a starting point (e.g., stock percentage = 110 minus your age).
- Diversify across asset classes: stocks, bonds, real estate, and alternatives.
- Rebalance annually and shift gradually to income-focused investments in retirement.
- Incorporate tax-loss harvesting and low-cost index funds for efficiency.
Mistake #5: Starting Too Late or Skipping Comprehensive Protection
Life gets busy—family, career demands—and retirement planning gets pushed aside. Others focus only on investments, ignoring protection against health events or market downturns.
Why it hurts: Starting in your 50s means playing catch-up with less time for growth. Unexpected disabilities or long-term care needs (average Ohio cost: $100,000+ per year) can derail even solid plans.
How to fix it:
- Begin now, even with small steps—compound interest is powerful.
- Build a holistic plan: investments + protection (life, disability, long-term care insurance).
- Review annually for life changes (job switches, family milestones).
- Partner with a local fiduciary who listens to your goals and customizes solutions.
Build a Stronger Retirement Plan Today
Avoiding these mistakes can transform your retirement from uncertain to secure. As Ohio professionals, you deserve a plan that accounts for local taxes, lifestyle, and risks—while protecting what matters most.
At The Protection Pro, we specialize in helping busy Ohio professionals like you create custom retirement strategies. We start by listening, then build protection-first plans tailored to your life.
Ron Maxwell, Founder & Financial Advisor
The Protection Pro, LLC
Independence, Ohio