Debunking the Top 5 Retire-Myths
Your ideas on what your life will be like in retirement, how you'll pay for it, when it will come and how much you'll spend once you do stop working may be all wrong.


After 35 or 40 years of paychecks, you might be counting the days before you can leave your job for good. However, your idea of what lies ahead in retirement years may be far different from reality. You need to be prepared for the fact that life as a retiree may not follow the script you wrote in your head.
Here are five myths about retirement that catch many retirees by surprise:
Retire-Myth No. 1
Every day is a free day. Waking when you like, drinking coffee in the sunroom and puttering around the house to your heart’s content may be your retirement dreams, but the truth is that those visions are not what the retirement lifestyle usually turns out to be. Daily calendars quickly fill up with hobbies, family events, volunteering and travel. Today’s retirees also face the issue of longevity. They may experience as much time in retirement as they spent in their career, and a long-term life of leisure doesn’t fulfill everyone. As a result, a third phase of life — balancing recreation, giving back to the community and work — is becoming the norm.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Retire-Myth No. 2
Retiring will be a breeze. Some people find the prospect of leaving the workforce scary and disorienting. Retirement is a transition that is a complex and emotional experience for most, with complete shifts in not just your daily routines, but your identity as well. The titles and workplace roles that identify you as a productive person are gone, and self-esteem requires adjustment. Having a plan for how you will spend your time is one way to minimize the stress of settling into a new schedule. If you don’t plan for it, gliding through a happy retirement is not very likely.
Retire-Myth No. 3
I will retire at the magical age of 65. This artificial benchmark was more accurate when traditional pensions and Social Security were paying full benefits at 65 and lifespans were much shorter. According to the 2015 Retirement Confidence Survey from the Employee Benefit Research Institute, retirement happens earlier than expected for half of retirees. Sixty percent of those leave due to health issues, and others leave because they were let go due to downsizing or had to quit to care for a family member. The earlier you begin planning your retirement, the more prepared you will be should life throw you a curve ball and your retirement dream date change.
Retire-Myth No. 4
Pensions and Social Security will fund my retirement. Today, 401(k)s, not pensions, are the norm. The big difference is where the burden of funding and investment risk lies. 401(k)s are largely funded by the employee and, unlike a pension, there is no guaranteed monthly income at retirement. Social Security benefits were designed to be a supplement to retirement plans and individual investments, not the primary resource.
Retire-Myth No. 5
I will spend less when I retire. A common adage is that you will only need 70% to 80% of your pre-retirement income during retirement. The truth is that estimating the percentage needed is complex and unique to each individual. Interestingly, according to the Employee Benefit Research Institute, 52% of retirees surveyed spent 95% or more of their pre-retirement income during retirement. The question becomes, will your nest egg support you through 25 or more years in retirement?
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Aleen M. (Ali) Swofford, PhD, CLU, ChFC, is a founding partner of Prosperity Partners Wealth Management, takes her 33 years of planning, investment and client-partner leadership experience and focuses on creative tax-advantaged solutions designed specifically for each client's unique financial situation. Ali specializes in solving problems and minimizing risks for retirement focused clients so they may concentrate on living, loving, and creating a legacy. What some may view as work is truly Ali's passion.
-
Microsoft Stock: Innovation Spurs Its 100,000% Return
Microsoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
By Louis Navellier Published
-
6 Great Vacation Ideas for Wheelchair Users
These six places provide plenty of travel inspiration for people who use wheelchairs.
By Becca van Sambeck Published
-
Three Essential Estate Planning Steps to Protect Your Nest Egg
After dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
By Nicole Farbo, CFP® Published
-
Is Chasing the American Dream Ruining Your Financial Life?
Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
By Anthony Martin Published
-
Retiring With a Pension? Four Things to Know
The road to a secure retirement is slightly more intricate for people with pensions. Here are four key issues to consider to make the most out of yours.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
How to Teach Your Kids About the Tax Facts of Life
Taxes are unavoidable, so it's important to teach children what to expect. Also, does your child need to file a tax return for 2024? Find out here.
By Neale Godfrey, Financial Literacy Expert Published
-
Revocable Living Trusts: The Good, the Bad and the Ugly
People are conditioned to believe they should avoid probate at all costs, but when compared with living trusts, probate could be a smart choice for some folks.
By Charles A. Borek, JD, MBA, CPA Published
-
How to Plan for Retirement When Your Child Has Special Needs
When your child has special needs, your retirement plan should include a plan for when you'll no longer be able to care for them yourself. A five-step guide.
By Christopher M. Butterworth, ChSNC®, CRPS, CLU® Published
-
Tax Advantages of Oil and Gas Investments: What You Need to Know
Tax incentives allow for deductions and potential tax-free earnings — benefits accessible only to accredited investors in small producer projects.
By Daniel Goodwin Published
-
Charitable Contributions: Five Frequently Asked Questions
Make the most of your good intentions by understanding the ins and outs of charitable giving. A good starting point is knowing what's deductible and what isn't.
By Stephen B. Dunbar III, JD, CLU Published