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.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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?
-
The New Reality for EntertainmentThe Kiplinger Letter The entertainment industry is shifting as movie and TV companies face fierce competition, fight for attention and cope with artificial intelligence.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
Betting on Super Bowl 2026? New IRS Tax Changes Could Cost YouTaxable Income When Super Bowl LX hype fades, some fans may be surprised to learn that sports betting tax rules have shifted.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to ChanceAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
-
I Met With 100-Plus Advisers to Develop This Road Map for Adopting AIFor financial advisers eager to embrace AI but unsure where to start, this road map will help you integrate the right tools and safeguards into your work.
-
The Referral Revolution: How to Grow Your Business With TrustYou can attract ideal clients by focusing on value and leveraging your current relationships to create a referral-based practice.
