Have you prepared well for retirement? You may have a retirement advisor and various stocks, mutual funds and savings bonds, tucked away over years of working.
But not all the things you have heard about saving for retirement is necessarily correct. Courtesy of NBCNews.com, here are five of the most common myths about saving for retirement:
1/ Saving for retirement can wait – The earlier you start saving, the longer the money has to grow. So don’t delay at all if possible.
2/ Medicare covers all medical problems – Medicare covers about half of the average seniors’ healthcare needs, according to NBC, but it won’t cover everything.
3/ You will spend less in retirement – There’s no magic formula that applies to everyone; instead, your retirement savings will depend on what kind of lifestyle you are looking forward to.
4/ There’s no consequences to taking Social Security early – Americans can start receiving their Social Security checks at the age of 62, but you won’t receive as much money; in fact, as much as 25% less.
5/ Buy more conservative investments with age – This advice isn’t as relevant as it was decades ago, now that life expectancy is longer than ever before. To pay for a 30-year retirement, sometimes aggressive investments are necessary.