Are you nervous about retirement? You may have heard some misleading information along the way. To clear the air, let’s bust 3 retirement myths with some sound financial counseling.
Busting Retirement Myths
Planning is an essential part of the retirement process. This step alone can bust a lot of the common retirement myths that trap people. Whether you dream of retiring in Florida or only want to work until your 60, you may need a reality check if you haven’t been planning. Here are some typical retirement myths that you may have encountered.
Retirement Myth #1: You Can Retire on Social Security Alone
Many Americans believe the myth that they will be supported by Social Security for all their retirement needs. Social Security was never meant for this purpose. It has always been designed as a supplementary income to savings and income. It also can only be drawn at a certain age.
The Social Security Administration says,”Social Security benefits, which last as long as you live, provide valuable protection against outliving savings and other sources of retirement income. Again, you’ll want to choose a retirement age based on your circumstances so you’ll have enough income when you need it.”
So now what? It would be wise to take account of all your current investments and savings or start hatching a plan to set in motion immediately. Retirement saving takes time- the more the better.
Retirement Myth #2: You Can Retire Early or Whenever You Want
Early retirement sounds great, right? Early retirement depends completely on how much you are able to save and the lifestyle you want during retirement. Here are some questions that can be a big determining factor as to when you can retire:
- When do you want to retire?
- What age did you begin investing?
- How well have your investments done?
- Do you want a luxurious or comfortable retirement lifestyle?
- How much inheritance do you want to leave?
- Do you anticipate any major medical care?
Unknown issues may also arise to compromise your early retirement dream. If the market tanks and your investments go down with it, you may want to delay until the market has recovered. Unexpected hits to your income or large expenses can also add years before you are able to put your feet up.
Retirement Myth #3: It’s All Travel, Adventure, and Fun
Cruises, museums, visiting family around the country, all seem to fill up elderly folks time. However, this is not the normal routine for all retirees most of the time. Some retirees actually need to work part-time during their golden years.
Retirement myths can be tough lessons to learn, especially if you are nearing the retirement window. Don’t panic until you have done your homework, used a Retirement Calculator and spoken with a professional.