12 Retirement Myths That Could Cost You Big

Retirement advice is everywhere, but a lot of it misses the mark. Some of it’s just outdated — other bits can lead you in the wrong direction entirely. Knowing what’s true and what’s just talk makes a big difference when you’re planning ahead. Here are twelve common retirement myths that can cost you if you’re not careful.

You Can Rely on Social Security

One of the biggest misconceptions is that Social Security will cover most, if not all, of your retirement expenses. While Social Security provides a safety net, it’s unlikely to be enough to maintain your lifestyle. Most experts recommend saving in addition to Social Security, whether through an IRA, 401(k), or other investment accounts. Relying solely on Social Security may leave you coming up short when you retire.

You’ll Spend Less in Retirement

Many people assume that they’ll spend less money when they retire. While some costs—like commuting and work-related expenses—may decrease, other costs can rise. Healthcare costs often increase as you age, and you may want to travel or enjoy hobbies that were previously too time-consuming.

Instead of assuming lower expenses, plan for a lifestyle that includes both new opportunities and unforeseen costs.

You Have to Retire by 65

Retirement at 65 has been the norm for many, but it’s not a one-size-fits-all approach. Some people prefer to keep working beyond 65, while others may need to retire earlier due to health or personal circumstances.

Your retirement age should depend on your financial situation, your health, and your personal goals. Don’t feel pressured to follow the traditional retirement age if it doesn’t align with your plans.

You Need to Save a Set Percentage of Your Income

While saving is essential, many people think there’s a set percentage of income they should put aside for retirement—usually around 15%. While this is a great starting point, everyone’s financial situation is different.

Factors like your income, living expenses, lifestyle goals, and the age at which you start saving all play a role. It’s important to assess your individual needs and plan accordingly rather than following a fixed formula.

The 4% Withdrawal Rule Always Works

The 4% rule is a popular guideline for how much you can withdraw from your retirement savings each year. The idea is that withdrawing 4% annually will allow you to make your savings last for 30 years. However, this rule is based on historical data and may not work in all situations.

It’s essential to reassess your withdrawals based on market performance, inflation, and personal circumstances to avoid running out of money.

Retirement Will Be More Relaxing

While retirement may sound like endless relaxation, many retirees are surprised to find that staying home full-time can be a shock to their routines. You may miss the structure and social interactions that a job provides. Many retirees find that staying active, volunteering, or even part-time work can provide more fulfillment than just sitting back. Consider how you’ll stay engaged in retirement before you stop working entirely.

Your Employer Will Take Care of Your Retirement

While employer-sponsored retirement plans like 401(k)s are a great way to save, they shouldn’t be your only source of retirement savings. Not all employers offer matching contributions, and some may not offer retirement plans at all. Additionally, you may not have the option to contribute as much as you would like.

It’s a good idea to supplement your 401(k) with personal savings or other investment accounts to ensure you’re saving enough.

You Can’t Retire if You Haven’t Saved Enough

Many people think that if they haven’t saved a specific amount by the time they reach a certain age, it’s too late to retire. The truth is, it’s never too late to start saving for retirement. While earlier saving is ideal, even small contributions later in life can add up, especially if you’re able to invest wisely. If you’re behind, consult a financial advisor to come up with a strategy to catch up.

You Don’t Need to Worry About Healthcare

Healthcare is one of the largest expenses in retirement, yet many people don’t account for it properly. Medicare may cover some healthcare costs, but not all of them—especially long-term care. Private insurance or savings to cover medical expenses is crucial for making sure you’re financially secure in retirement.

Make sure you factor in healthcare costs when planning your retirement, and consider long-term care insurance to protect yourself.

You Need To Pay Off Your Mortgage

Many people believe they can’t retire until they’ve paid off their mortgage. While it’s certainly ideal to enter retirement with no mortgage payments, it’s not always realistic for everyone. Depending on your income in retirement, it may make sense to carry your mortgage with you and use that extra cash to invest or cover other expenses.

Focus on making sure your retirement income is sufficient to cover your costs, even if your mortgage isn’t paid off.

Your Lifestyle Doesn’t Need to Be Planned

Leaving work behind is a big change — and it takes more than just clocking out for good. If you don’t know how you’ll spend your time, the days can start to drag. Plenty of people retire without a plan and end up feeling lost or restless. Think ahead about what you actually want to do so your days still feel full and meaningful.

Relying Only on Cash Savings

Some people think keeping all their retirement savings in cash is the safest option. But with inflation constantly rising, cash savings can lose value over time. It’s important to invest in stocks, bonds, or other assets to grow your savings.

A well-diversified portfolio can help protect your purchasing power and increase your retirement funds. Don’t just rely on cash—make sure your savings work for you.

Planning for a Secure Retirement

Planning for retirement requires careful consideration and action. Avoiding these common myths and taking a realistic approach to your retirement planning will help set you up for success. Whether you’re just starting or looking to fine-tune your strategy, keep in mind that retirement is about more than just stopping work—it’s about living a fulfilling life after your career ends. Take the time to plan smartly, and you’ll be prepared for the future you’ve always wanted.

Retired and Restless? These 11 Jobs Are Perfect for You

Retirement doesn’t have to mean the end of work; it can mark the beginning of doing something meaningful, flexible, and enjoyable. Many retirees choose to take on new roles to supplement income, stay engaged, or explore passions they didn’t have time for earlier. Here are 11 rewarding job opportunities perfect for retirees with diverse interests and skills. Retired and Restless? These 11 Jobs Are Perfect for You