As baby boomers across the country get ready for retirement and look at their savings accounts, they're made painfully aware of one thing - this isn't your parent's retirement. Many American workers today don't have the pensions that cushioned the previous generation, and the economic downturn took a toll on many retirement accounts.
The first step to accurate planning is to approach each one of the myths around retirement and debunk them.
The first is that Medicare covers all health expenses, according to The Boston Globe. This is a common misconception. Services such as home care, prescription drugs, and retirement homes aren't actually covered by the program, which means that it's important for retirees to save up for these future expenses.
Retirees also aren't the careful spendthrifts they once were. Baby boomers want to have a fun and fulfilling retirement, which means vacations, doting on grandkids and luxury spending.
Don't count on lower taxes, either - the news source reports that many states are considering a similar solution to Illinois, which just raised income taxes from 3 percent to 5 percent to address its looming deficit.