Retirement Myths

5 Retirement-Planning Myths

Courtesy Of Kimberly Moore AXA Advisors, LLC (407) 926-2588 kimberly.moore@axa-advisors.com 5337 Millenia Lakes Blvd. Suite 405 Orlando, FL 32839

1. You Will Spend Less in Retirement.
Some people expect to reduce their spending once they say goodbye to their careers and enter retirement. But new travel experiences and reinvigorated interests in hobbies mean that many new retirees actually tend to spend more than when they were working. As the years go by, potential health issues often prove to be an increased financial expense that wasn’t anticipated.


2. You Don't Make Enough Money to Save for Retirement.
While this is obviously true for some, many people simply live beyond their means. If you want to save money for retirement, make it a priority by paying yourself first through payroll deductions or other automatic payments.

3. You Need a Large Income to Become Wealthy.
Consistently spending less than you earn and investing the difference are what you have to do to become wealthy. Even someone with a modest income can become a millionaire by saving and investing diligently over time.

4. Social Security Will Take Care Of Your Retirement Needs.
Some baby boomers did not save much during their careers because they expected Social Security to carry them through retirement. However, Social Security was never intended to be a primary source of income. It was designed to be a supplement to a pension or other retirement savings. Since it is unlikely to support you over the whole of your retirement years, it is better to view Social Security as a safety net rather than the foundation of your retirement plan.

5. $1 Million Will Be Enough on Which to Retire.
It sounds like a lot, but a million dollars is simply not what it used to be. In light of longer life expectancies, potential health-care costs, and the lifestyle you want to maintain, $1 million may not go that far. It’s important to get the facts regarding ways to create your brightest future using what you have today. Ask for the facts, review the choices, and decide for yourself.