Who wants to be a millionaire?
Do You Believe These Retirement Myths?
Social Security will be enough for me.
Social Security is meeting a smaller percentage of most retirees’ financial needs than in the past. According to a study in the year 2000 by the Social Security Administration, Social Security provides only 38% of the total income of those age 65 or older.
I won’t need much when I retire.
Older people are generally in better health than ever before. Many retirees have very active lifestyles — and need the money to pay for them. So while some expenses (such as commuting costs) will go down in retirement, others (like travel and entertainment) might go up.
I’ll only be retired a short time.
People are living longer these days. And they’re retiring earlier. As a result, your retirement may last almost as long as your working years. Most people should plan to have a retirement income that will last at least 15 years, and probably more.
I’ve got plenty of time to save for retirement.
Most people underestimate how much they’ll need to save to provide an adequate retirement income. The earlier you start to save, the less you’ll have to save each month to accumulate the amount of money you’ll need.