Myth #1: I don’t need to revisit my withdrawal rate
By and large, an overall principle has been that an appropriately broadened portfolio could last 30 years with withdrawals of 4% or less and yearly increments to match the pace of expansion.
Myth #2: Medicare will cover all health care costs
Medicare is a valuable program for many retirees, but it wasn’t designed to cover everything.
Myth #3: Social Security won’t last
Though the solvency of the Social Security program is an ongoing topic of conversation, if you’re in or nearing retirement, it is not likely to materially affect you.
Myth #4: I can work for as long as I need to
Longer life spans could mean additional years in retirement and even working after 65. Unfortunately, considering the uncertainties of aging, working as long as you need or want may not be realistic. For instance, illness or disability account for half of all early retirements.
Myth #5: I’ll spend less (and pay less taxes)
Depending on your objectives, you may end up spending more in retirement than you anticipated, especially if you’re on the road, visiting kids and grandkids, or trying out new hobbies or interests.
Myth #6: I’ll live in the same place throughout my retirement
You may believe that your mortgage will be paid off and your housing bills would be fixed by the time you retire. However, moving is often a reality during the retirement years.