There's a lot of talk around retirement. From creating a retirement plan and organizing finances to discussing the newfound amount of time retirees are able to enjoy, retirement is definitely a hot topic.
Of course, like any popular topic, there are bound to be myths around the subject. For example, some people believe they can count on their social security. Luckily, we’re here to dispute those myths and share some nice surprises that you may not know about retirement!
Myth #1: You Can't Rely on Social Security
According to Ameriprise Senior Economist Russell Price, Social Security is probably more secure than people think. Adjustments made to Social Security back in 1983 have done a lot to improve the program's long-term viability, he says.
While social security payments may not cover all of your retirement needs, they can make a significant difference. The best bet when it comes to social security is to estimate what your payments will be as part of your retirement. Plus, if you delay payments until the age of 70, you may be able to receive a larger monthly check!
Myth #2: You'll Live in the Same Place Throughout Your Retirement
Along with more time on your hands, retirement can also bring a sense of clarity. Many retirees discover that they no longer want or need to have a big home. Whether it’s too much of a hassle to take care of, or you simply want to move somewhere new, don’t count on staying in the same home throughout retirement.
Myth #3: You Can't Afford to Retire
There is no set number that comes along with saving for retirement. Retirement is different from one person to the next. What retirement comes down to is choosing how to maintain your desired lifestyle without having to work. Being able to retire isn't about hitting a certain number in the bank. You have to think about how much you plan to spend during retirement versus how much you need to save in order to retire.
While there are plenty more myths about retirement, in the end it all comes down to personal and lifestyle choices. Discuss with your spouse or family members what retirement means to you. Then, set up a financial plan in order to retire the way you want.