Debunking the Top 5 Retire-Myths

After three or four backbreaking decades of collecting a paycheck, supporting a family, and pinching pennies, you may be counting down the days until retirement. Though the radiant song telling a story of days free from bosses, co-workers, and deadlines warmly beckons, many retirees are finding that the promised land is not all manna and honey.

There are five common myths about retirement that catch many retirees off guard soon after their emancipation. One, every day is not a free day. Schedules quickly fill up with appointments, hobbies, and family events. Two, retirement is not always easy. Some individuals freshly sprung from the workforce find their new freedom disorienting and difficult to cope with. Three, you may not be able to retire at sixty-five. With longer life expectancies and fewer pensions, the ideal retirement age is trending upward. Four, pensions and social security may not be able to fully fund retirement goals. These benefits were designed as supplements, not your main source of retirement income. And finally, five, not everyone spends less in retirement. The common adage is that only about 75% of pre-retirement income will be needed in retirement. In a significant number of cases, retirees spent at least 95% of their pre-retirement income during their retirement.

See Ali Swofford, Debunking the Top 5 Retire-Myths, Kiplinger, May 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.