Underestimating a budget

With more free time to spend, people often end up spending more. You can avoid this by estimating a living-expenses budget and trying to live on that for a year or two before you retire.

Leaving out the benefits

When calculating your budget, make sure to include money for such items as dental insurance or monthly gym payments, which probably were covered when you were employed. Medicare doesn't typically pay for dental services.

Divesting can take time

Although it was easy to invest your funds in a brokerage account, taking them out can be another matter. Companies can become even incompetent or uncooperative when you tell them you want to cash out your 401(k). Get all your papers in order, and keep track of the dates when you're supposed to receive forms or payouts from your financial institution.

- Consumer Reports Money Adviser

and MarketWatch