Ask anyone about what you need to do in order to retire comfortably and you will likely get a different answer every time. The fact is planning for retirement requires a clear vision into the future. Since most of us aren’t equipped with that skill, planning can seem a little difficult, if not impossible. There are plenty of great-sounding myths about retirement planning, but these aren’t necessarily true. Here are some of the most common myths you should be aware of and not fall for!
It’s easy to think you won’t need as much money when you retire, because you’ll be frugal and won’t have a lot of the expenses you have now. However, what are you going to do with all the newfound, extra time on your hands? Chances are you will travel more, pick up new hobbies, activities and other things to keep yourself occupied. Most of those things cost money you may not necessarily spend now.
With the age you must reach to claim full Social Security benefits increasing, there’s no guarantee you will make it that long. In addition, the benefits aren’t usually enough for people to live solely off of. Take Social Security benefits into consideration when planning for retirement, but don’t make them your only plan.
Medicare benefits differ among people because everyone has different health circumstances. You need to plan out your possible medical bills as much as reasonably possible in order to estimate how much money you’ll need to cover them. Medicarepays around half of your medical bills when you’re retired, but most of the time this doesn’t happen until age 65. People often don’t look at closely enough at their health insurance and medical care while planning for retirement.
People are living longer nowadays, and the average age of death will likely increase as technology and medicine advances. It’s not uncommon for people to live well into their 80’s now, so it’s best to plan on living longer than you think. We never know when we are going to die, so plan to live much longer than you expect so you won’t regret your decision if you do happen to outlive expectations.
Planning for retirement is tough since you can’t see into the future. Feel free to contact us to learn about other myths and to get a retirement plan in order today!