Busting 5 Retirement Myths
By Solid Serenity Legal Solutions
Planning for retirement can be confusing. There are so many questions. How much money do you need to save for retirement? How do you save enough money? And, to make matters worse, there is a lot of common misinformation.
Today, we are busting 5 retirement myths.
(1) I Can Retire On Social Security Income Alone
The average monthly income a retiree gets on Social Security is about $1,500, or $18,000 per year. Though we hope our mortgages and other big bills will be paid off when we retire, it’s unlikely $18,000 will be enough for you to live on comfortably for your retirement.
Moreover, projections show Social Security income will decrease by 50% by 2035 if Congress doesn’t make changes. If you want true retirement security, you need to make and follow your own plans, not the government’s.
(2) Investing The Full Amount of My 401(k) Matching Program Will Fully Fund My Retirement
You should absolutely invest and take full advantage of your company’s 401(k) matching program. That’s free money!
Experts recommend investing 15% of your income to have a robust retirement. That likely means investing in more products than your company’s 401(k) plan alone. A good financial advisor can help you find the right products for you. Call us and we can set you up.
(3) I Can Work When I’m Retired
As we age, health care expenses and needs rise. Often, we find that we cannot do the same jobs we did when we were younger.
You cannot guarantee your health and ability to work later in life. But, if you save enough to not have to work, being able to do so later is just icing on the cake. You should plan for retirement as though you will not work.
(4) Healthcare Costs Won’t Be a Problem Because I’ll Have Medicare
Medicare is a great resource for people over the age of 65. But, it does not cover all of our medical expenses. Co-pays, deductibles, and long-term care over 100 days will cost you money. And, long-term care is expensive.
Long-term care facilities cost an average of $4,000 per month. And more than half the people turning 65 today will need long-term care. Imagine how that number can grow in the next decade or more.
Moreover, Medicare is a government program. This means the future of Medicare cannot be guaranteed. Consider getting long-term care insurance, save enough in retirement to cover medical expenses, and consider a Health Savings Account to afford your healthcare costs as you age.
(5) I Can’t Save For Retirement Because It’s Too Late
Start when you can with what you have. When you’re 40, if you make $48,000 per year and save 15% in retirement, you could have almost $1.2 million in retirement at age 67.
Any retirement savings is better than no retirement savings. A trusted advisor can help you get started and make the right plan for you.
We have built a solid referral network with all the resources you need to plan for your retirement, protect your assets, and nurture and protect your family. Book an appointment online for a consult and let us help you get your financial house in order.