There are many myths about retirement that many people still believes to be true. Myths belong to the ancient society and this is the new generation. There are also some formulated by companies and firms selling retirement insurance for their own benefits. Let us debunk five of the biggest retirement myths and take a look of the difference between a truth and a myth.
2. 65 is old and should retire from work and should just stay at home. Old is not in your age. It’s in your mental and physical capabilities in order to get the work done. Retiring at 65 doesn’t mean that you will hinder yourself from any physical activities. You could always opt to have a part time job while taking some well-deserved leisure. Keeping your brains active and engaged in critical thinking keeps you young.
3. Women don’t need a retirement plan since their spouses have it anyway. This is so untrue. To exclude women from any retirement plan to rely solely from her husband’s is an unfair ideology. Some explained it as women tend to lose their spouse early and so would get the benefit of the funds. This is such rubbish thinking.
4. Those that retire early are lazy. That is what most people think. Questions arise why on earth you would retire at an early age when you still have the energy to do something and more. Wrong. Those who retire early are very goal oriented individuals. It takes a decade to achieve retirement plans that suits your comfortable life. It takes dedication, willpower, investing ability and a drive into being thrifty, save money, save more, and just focus into saving more and more. Absolutely those who retire early, definitely is hardworking.
5. Social Security would provide all you need once you retire. Social security takes about 38% of an employee’s income. This is required with all persons and organizations connected to a work or industry. Increasing retirement plans also increases retirement benefits. Many believe that it is enough to cover most of your expenses after you retire. Truth is social security is less likely to make your life comfortable. It should only be a supplement to your financial planning and savings and not taken into a solid foundation to carry on with luxurious living.
The most common type of retirement is the I.R.A. It is actually an arrangement not a source of income. It is not a replacement of bank account. And it should not be mistaken as a savings. So plan your retirement early on.