3 Retirement Myths Debunked

Featured on Barron’s

By Cheryl Winokur Munk

When it comes to retirement, many people think that what was true for their parents and grandparents still holds true today.

You may have seen your grandfather retire at age 62, collect a pension and Social Security for a dozen or so years, and think this scenario will be feasible for your own retirement. Or perhaps your Depression-era grandmother refused to give up her frugal ways despite having ample savings and chose to live out the rest of her life without ever enjoying a penny of what she’d scrimped and saved.

But retirees or near-retirees who are stuck in the past could be making grave mistakes that could ultimately cost them their long-term security.

Most people from earlier generations didn’t spend their retirement years taking exotic river cruises or exploring remote locations halfway across the world. And, chances are, they didn’t live long enough to incur many medical costs that threatened their thrifty lifestyle.

The realities of a digital-based society that has put a greater onus on the individual to save for retirement have also changed some of what used to be true. Pensions are fading away. Social Security’s long-term viability is in question. Health-care costs are expected to keep rising.

“Don’t just do something because your dad did it and your grandma did it. Take a look at how things are today and make good decisions going forward,” says Jeremy Shipp, founder of Retirement Capital Planners, a registered investment advisor in Glen Allen,Va.

Here, then, are a few retirement myths to be aware of.