If you are nearing retirement age, you might have already done some research, talked to a financial planner or crunched some numbers about retirement planning.
Congratulations! That means you are head of the retirement planning curve. If you are looking for the truth about retirement planning, we’re here to help. Here are three common retirement beliefs that we’re myth busting. Read on:
Your expenses won’t change
When you are considering retirement planning options, one thing many people look at and base their calculations on is current expenses. But the fact of the matter is, your expenses when you retire aren’t likely to be what they are today – for many reasons. Inflation, health, children/grandchildren and other fluctuations will all change. You could also have housing changes or lose your spouse.
You also might not be able to rely on Social Security or a pension to round out your budget, as past generations did.
You can always keep working
One big myth in retirement planning is the assumption that if you run out of money or have larger than expected expenses you can simply keep working or get another job. But the fact is, that may not always be possible. Life happens, and people take ill or get downsized – forcing a retirement.
Expect the unexpected and plan to retire at an age when you WANT to – not when you are forced to.
You won’t need all your money
The old thinking was, you will only need a percentage of your retirement savings to live on, so you would leave an inheritance or nest egg to your children or grandchildren. But people are living longer and are using up more retirement savings, making retirement planning more challenging.
And even if you lose certain expenses, like supporting a grown child or having a mortgage, other expenses like health care or taxes are sure to increase.
For more retirement savings tips and ideas, follow us on LinkedIn and Facebook!
If you have other questions about retirement plan loans, email us or call 937.308.0758.
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