There are several retirement myths circulating about from well-meaning people.
You are planning for retirement.
You started by researching information online.
Although the internet certainly has helpful information, it is not always accurate.
According to a recent Auburn.pub article titled “Let’s Leave These 3 Retirement Myths in 2020’s Dust,” you should be wary of retirement myths.
What are some common retirement myths?
You can work until you choose to leave your job.
You may be healthy now, but you cannot predict the future.
You may be forced out of work through illness or injury.
According to an Aegon Center for Longevity and Retirement study, about 40 percent of current retires reported having had to retire earlier than planned.
Only 15 percent of these individuals reported having left their careers early because they had met their financial retirement goals.
What can you learn from this retirement myth?
You should calculate how much you need in your nest egg to retire comfortably.
When it comes to calculating this figure, you should plan for the money to last for one to four decades.
If you are behind on your savings, you may need to work longer to make up the difference.
Because you may not be able to control exactly when you retire, you should start preparing early.
Medicare will cover all of your health care needs.
While Medicare will cover some expenses, it will not pay for everything.
For example, Medicare Parts A and B do not cover vision care, dental care, or prescription drugs.
You will need to include budgeting for health care payments in retirement.
Although they have higher premiums, Medicare Advantage plans provide coverage for a wider range of services.
Most people spend at least $300,000 on healthcare costs during retirement.
Social Security is going away.
Most Americans will depend on Social Security for at least a portion of their retirement income.
With Social Security paying more money out in 2020 than what was paid into Social Security, the discontinuance of Social Security may not seem like a retirement myth.
Social Security has dipped into the trust fund to make withdrawals.
At the current rate, the surplus may be empty by 2034.
Even so, it is more likely for there to be a reduction in the benefit amount than a total end to the program.
Saving and planning for retirement can be daunting.
Knowing the difference between retirement myths and retirement facts can help you prepare to the best of your abilities.
It pays to seek the advice and counsel of a financial advisor to help you navigate your retirement planning.
Reference: Auburn.pub (Dec. 13, 2020) “Let’s Leave These 3 Retirement Myths in 2020’s Dust”