Retirement can be a financially difficult prospect for many of us. We need all the help we can get when investing in our retirements and that includes knowing about any hidden fees. This list will explain five of the biggest, worst fees you should be most aware of when hoping to retire.

Advisory fees

Having a financial advisor can do wonders for your retirement plan. However, they can also charge you some of the harshest fees your retirement investments will face. Advisors often talk of payment in terms of “basis points” which add up to a fraction of your entire portfolio’s worth, which can add up to huge amounts.

401(k) expense ratios

401(k) plans are some of the absolute best vehicles for retirement savings. One thing to be aware of always is that these plans are not free and can sometimes be more expensive than you could expect. Expense ratios are never large amounts at once, but add up over the entire time you’re paying into the 401(k) plan.

Annuity fees

Some people buy annuities to ensure a steady stream of income every year. This is often a very good way for people to supplement their other sources of retirement income. Annuities do have some serious fees sometimes, however. Most notorious among annuity fees are high commission fees by the annuity’s seller.

Yearly mutual fund fees

Mutual funds have annual fees that investors need to be aware of. These fees are relatively small on their own when taken singly, but add up year after year to seriously diminish your returns. Management fees, 12b-1 fees, and administrative costs are the most common annual fees on mutual funds.

Taxes on withdrawals

IRAs and 401(k) plans are tax-deferred while you are paying into them, but once you start withdrawing from these retirement savings, you will need to pay taxes on the amount of your withdrawals. It is essential to plan for paying these taxes when budgeting your retirement expenses or they can surprise you.