As the economy slipped into recession, the anxiety and pressure for prospective retirees began to skyrocket. However, there are a couple of myths that developed that do not ring true, leaving some individuals breathing a sigh of relief, according to Time Magazine.
The news source reports that many seniors believe they need a $2 million nest egg before entering their golden years, which results in many individuals putting off retirement living. But, this is not true. There have been many retirees that have not had this much money when they entered their golden years, sometimes a lot less.
The 4 percent withdrawal figure is another myth that leaves many retirees uneasy. This myth states that in a senior's first year of retirement, they should spend 4 percent of their savings to protect themselves from inflation and the economy. However, if doesn't seem like a good time, retirees can hold off, and eventually take out more in the long run, the news source reports.
The relationship of money and retirement has been a popular issue in the past couple of years, and not only because of the recession, but also due to the immense number of baby boomers who are about to reach retirement. According to YNN, there will be 78 million boomers turning 65 years old in the next 20 years.