As remaining Baby Boomers wind down for retirement while the already-retired move forward with their retirement plans amid their golden years, it’s about time we discussed some of the more common retirement myths, why people believe in them, and how they could set one back.
Undoubtedly, retirees and those soon to join the club have worked incredibly hard to accumulate a nest egg to sustainability support them anywhere from a decade and a half to four decades. With that, one shouldn’t put their nest eggs at risk because nobody knows when or if they’ll be able to return to the workforce at a later date.
In any case, let’s look at three common retirement myths, which, I believe, are a benign inconvenience at best and a hit on your nest egg at worst. Additionally, we’ll go over potential ways for retirees to sidestep the pitfalls of such retirement myths.
As always, don’t take my word for it. Hire a financial adviser and wealth planner to go over your plan so you can gain a magnitude of assurance that money can buy!
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First up, we have the retirement myth that one’s cost of living will be lower through their retirement years. As always, nobody can tell the future. Also, everybody’s retirement lifestyle is going to be different. As I noted in a prior piece, some retirees are shooting to spend as much as they can to maximize their enjoyment in retirement, whereas others aim to leave something over to loved ones or charitable organizations they believe in.
In any case, I can see why this retirement myth is so easy to buy into. Once one enters the middle of their golden years, there may be less desire to spend lavishly — the so-called no-go years whereby one’s less able to spend on travel and adventures. Indeed, this makes sense on the surface. However, it neglects to account for the so-called go-go (earlier retirement years) years that could see retirees splurge on cruises, gifts, and all the sort.
Given some prioritize a fat or chubbier retirement lifestyle than others, I’d say this myth can be somewhat harmful for some to follow. Perhaps those who aim to maximize their “fun” in retirement with less consideration for cash flows could be at risk of eroding their nest egg if they blindly subscribe to this myth. What’s the solution? Just talk to an adviser!
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