Retirement has been an American myth since the idea became mainstream, and it only gets reinforced when you hear people saying, I can’t wait to retire. However, there are some common misconceptions about retirement that can make this so-called dream turn into a nightmare if you don’t do your research first and pay close attention to the details of your finances.
In this article, Bill Schantz will explore some of the most common myths about retirement and show you how to prevent them from becoming your reality.
Top 5 Myths About Retirement Busted By Bill Schantz
Myth #1: Retirees Have Nothing to Do
There’s more to life than work, as per Bill Schantz—retirees can pursue their passions and maintain relationships that mean a lot to them. If you love to travel, do it! Retirees are free from commuting and office politics and can enjoy leisure activities they might not have had time for while they were working. You’ll also be surrounded by people who understand what you’re going through as a retiree. Many retirees find community in senior communities that offer educational programs and social activities.
Myth #2: Our Kids Will Support Us After We Retire
If your plan is to let your children support you in retirement, don’t count on it. According to a recent study from The Heritage Foundation, fewer than 30 percent of households will parents depend on their adult children for support (defined as financial or nonfinancial) in their retirement years. So if you’re planning on relying on your kids to get you through those golden years after you stop working full-time, think again, as per Bill Schantz. You could be setting yourself up for disappointment.
Myth #3: It’s All Glitz and Glamour Once You Retire
If there’s one thing that many people forget about retirement, it’s that you still have to work. Sure, maybe you don’t have a 9-to-5 job anymore; but if you want to maintain your lifestyle and enjoy a long retirement period with no worries about employment or money, you still need to make sure your nest egg is large enough. The sad truth is that most people never realize how quickly their savings will dwindle in retirement.
Myth #4 – People Who Retire Early Will Never Experience True Happiness Again
False. While you may feel happier at 25 than 65 (and who wouldn’t?), that doesn’t mean an early retirement will be a sad affair. In fact, according to Bill Schantz, many retirees report feeling more satisfied with their lives after leaving work behind. They have more time to spend with family and friends, pursue hobbies and interests they never had time for before, and travel to exotic locations.
Even if you don’t leave your job entirely until later in life, retiring from some aspects of your job can help make you happier and more fulfilled—so it’s never too late to start thinking about what makes you happy and how to get there!
Myth #5 – My Monthly Costs Will Decrease
The single biggest mistake people make when planning for retirement is assuming that their monthly costs will drop or stay about the same as they are today. However, without a job to pay your salary and work-related expenses (commuting, work clothes, and lunches), you might end up spending more than you expect. This is especially true if you’re planning on relaxing at expensive locations during your retirement years.
For example, retirees who move from New York City to Florida can see an increase of $2,500 per month in living expenses alone. Don’t forget that Medicare doesn’t cover everything—you may still need supplemental insurance coverage.
Bill Schantz Recommends Thorough Research
Bill Schantz suggests that there’s no such thing as a one-size-fits-all retirement plan. You should do your research and make decisions based on your situation and income level.