Popular Retirement Myths Debunked

Popular Retirement Myths Debunked

2) People primarily work in retirement because they need the money

Money surely plays an important role in returning to the workforce, but this is not true. Among pre-retirees, staying mentally active and earning money are tied as the top two reasons for planning to work in retirement. However, many people of actual retirees say staying mentally active is the top reason for remaining in the workforce.

3) Retirement doesn’t have to be your priority

It doesn’t have to be your priority, but it usually should be. If you have debt with a very high interest rate, you should try to pay that off quickly. However, once you have an emergency fund and basic savings, retirement savings should take priority. There are many things to consider when saving for your children’s college tuition, but in the end, your retirement is more important.

4) Other myths

Certain places have a reputation for being retiree friendly. For example Alaska, Florida, Nevada, South Dakota all have no income tax, but many of the states have high property or sales taxes, hence, you can’t plan to have extra money by moving to a different state. Another myth is the idea that you won’t need retirement for that long because you plan to work part-time or you plan to retire later in life. If you are thinking that your kids or family members will take care of you, you could also be disappointed. Although many family members want to help, but they can face unexpected expenses.