17 Retirement Myths You Shouldn’t Believe Anymore

There are many retirement myths going around that are simply not true. Which are they? In this article, you’ll find 17 of them.

You’re Saving Too Soon

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Some people believe that they don’t need to begin saving for retirement until they are in their 30s. But in reality, it is never too early to begin saving. The earlier you start saving, the higher your chances of being able to enjoy a comfortable retirement.

You Will Be Rich

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Retirement doesn’t mean having a lot of money. “Against the backdrop of rising inflation, older Americans are struggling with higher costs related to housing, utilities, groceries, and health care… Even for older adults who are making ends meet, a single health or other emergency can quickly tip the financial scales,” says the National Council on Aging.

Social Security Is Enough

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Some people think that Social Security payments are enough to be able to enjoy a reasonably comfortable retirement. But the truth is, you will not be able to support your pre-retirement standard of living on Social Security payments alone. You must have other sources of income.

Personal Savings Will Suffice

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It’s commonly believed that personal savings will be enough for you to enjoy a good retirement. But in reality, you will need other sources of income if you want to retire comfortably. A good state pension and investments that will give you a monthly allowance will be of great help.

You Can Rely On Your Employment Plan

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Many people are relying entirely on their employment plan to get them through their retirement. But this may not give you enough funds to continue your current standard of living. Aside from your employment retirement plan, you need to have some of your own savings to fall back on.

Travel Will Be Cheaper

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When you retire, you will be able to travel off-peak and save money. But this doesn’t mean travel will be cheaper, as you’ll spend more on insurance. According to Forbes, “If you’re a senior planning a trip, you’ll need to budget, on average, an additional 8% to 18% of your trip cost to cover a senior travel insurance policy.”

Hobbies Will Be Cheaper

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There will be a lot of senior discounts for you to take advantage of when you get to retirement age. Some hobbies will be free, and others will come to you at discounted prices. But this doesn’t mean you’ll spend less on hobbies than you do now, as you’ll have more time to participate in them.

You Will Spend Less

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Some people think they won’t need a lot of money to retire because they will spend less. But this isn’t necessarily true. Healthcare costs skyrocket when we get into retirement. Also, the cost of traveling to and from healthcare checkups and appointments must be factored in.

You Can Catch Up On Saving

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Saving for retirement is expensive, and once you put it off, it’s very difficult to make up for lost time. Some people think that they can catch up on a couple of years of savings when they pause their retirement plan, but this is a lot easier said than done.

You Won’t Worry About Taxes

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Some people believe that they won’t have to worry about taxes when they get older and begin retirement. But this isn’t true. If you receive a lot of income from your pensions and withdraw a lot of money from your retirement accounts, you’ll be heavily taxed.

You Don’t Need Financial Advice

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“While not everyone needs a financial advisor, many people would benefit from personalized advice to help them build a strong financial future,” says Bankrate. Some people think that saving for retirement is simple, but getting advice will make sure you’re saving enough to be comfortable in the future but not so much that you’re uncomfortable now.

You Will Be Taxed Less

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There is a lot of false information about taxes and retirement. Some people believe that they’ll automatically drop into a lower tax bracket when they retire, so they don’t calculate for high tax payments when they get older. But the truth is that your tax bracket may stay the same or even increase when you retire, depending on your income.

You Can Spend Your Retirement Fund Now

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Some people forget that although a retirement fund is full of money for you to spend, it’s not available for you to use until you reach retirement age. In fact, some traditional IRAs will make you pay a fine if you want to spend some of the funds before you reach a certain age.

You Have Plenty of Time to Save

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When we’re young, we often feel like saving for our retirement is not a priority and that we have plenty of time to begin saving. But health issues can appear suddenly and prevent us from being able to save as much as we’d like.

Your Partner Will Support You

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Relying solely on your partner for support during retirement isn’t a wise decision. The figures from Everyday Health show that “more than one in three people who divorce in the United States are older than 50.” You and your partner may not always be together to support one another.

Your Job Will Always Fund You

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Some people put all of their eggs in one basket and trust that their jobs will completely fund their retirement. But it isn’t good to rely just on your job as a way of saving for retirement. You could lose your job or have to stop working because of care responsibilities.

Your Children Will Support You

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Some people are not concerned about saving for their retirement, as they are relying on their children to support them financially in their old age. But your children might not be in a financial position where they can support you and it’s not fair to put this burden on them.

Read More: 17 Things Society Can No Longer Do Because Gen Z Said So

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Gen Z, our digital-native, trendsetting generation, is making waves in the cultural sea, steering the ship of societal norms in fresh and unexpected directions. As they charter new territories, there are certain practices they’d rather we say goodbye to. Curious? Let’s take a look at 17 things the rest of us can no longer do because Gen Z said so.

17 Things Society Can No Longer Do Because Gen Z Said So

19 Big Mistakes People Make After Losing a Spouse

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Losing a spouse is one of life’s most tragic experiences, and when we’re overwhelmed by grief, we might make some decisions that we’ll later regret. Here are 19 mistakes people make after losing their spouse.

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20 Time-Honored Practices Our Grandparents Followed That We Should Bring Back

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Our grandparents had a far simpler life. There was no such thing as social media. Instead, there was more walking and meals were always fresh and homemade. With so many things keeping us busy nowadays, sometimes life would seem much easier if we lived the way our grandparents did.

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19 Common Behaviors of Highly Intelligent People

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Intelligent individuals often display a range of behaviors and qualities that set them apart from others. When exploring these characteristics, it’s crucial to comprehend that intelligence is a multifaceted attribute. Here are 19 essential behaviors and qualities frequently observed in highly intelligent people.

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17 Things We Were Taught in High School That We Now Know Aren’t True

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Well, this one may depend on when you went to high school, but for this millennial, these are the things we were taught in high school that have been proven not to be true. Personally, I still want to go back and correct every teacher who told me I wouldn’t always have a calculator in my pocket; the joke is on them.

17 Things We Were Taught in High School That We Now Know Aren’t True