Retirement Myths Many of Us Believe
Saving for retirement isn’t an easy thing in America, and it can sometimes be difficult to know what the best steps are. Luckily, financial experts are on hand to help. Here are six myths about retirement that have been debunked: don’t let these ideas lead you down the wrong path.
Myth #1: You’ll Live off Social Security Alone
Social Security is helpful, but it isn’t meant to be your entire retirement plan. Right now retirees get roughly $1,657 a month - or about $19,900 a year - hardly enough to live on comfortably, alas. You’ll want to build your own savings and investments, because relying solely on government benefits isn’t going to do it.
Myth #2: Investing up to Your 401(k) Match Is Enough
Yes, you should always grab your employer’s match - it’s essentially free money and that’s just what you need. But stopping there is like running a marathon and quitting early. Experts recommend investing about 15% of your income annually into retirement.
Myth #3: You’ll Work Through Retirement
Lots of people say they’ll work in retirement, but most don’t actually need to. If you plan well, work past 65 becomes optional, not because you're forced. The goal is setting yourself up so you can choose work for fun or purpose, not necessity.
Myth #4: Medicare Covers All Medical Expenses
Once you turn 65, Medicare kicks in, but don’t assume it covers everything. You’ll still pay deductibles, co‑pays, and long-term care costs like nursing homes. Health savings accounts and long-term care insurance (ideally started around age 60) can help you have peace of mind as you get older.
Myth #5: It’s Too Late to Save for Retirement
It doesn’t matter how far behind you fell - you can always start saving. As the old saying goes, "The best time to plant a tree was 20 years ago. The second best time is now.” For example, someone in their 50s might aim for 25% contributions until age 67. That still builds good savings.
Myth #6: You Can Plan Your Retirement on Your Own
Sure, you can DIY your finances if you want, but a lot of people run into trouble that way. What you need to do is hire a professional to help you along your path to financial security. That’s what financial experts recommend, and for some it’s the number one most impactful thing they did for their money.
