The internet is a wide and wondrous place. Information about saving for retirement can be found near instantaneously, but how can you sort out the good information from the bad?

We’re here to help bust five of the biggest myths about saving for retirement.

The First Myth: Social Security will cover all of your expenses once you retire.

The truth: Social Security will still be around when you retire, but most likely at a reduced rate. According to WebMD, the birth rate in the United States is lower than it needs to be to replace the current population. Coupled with automation, the tax base will most likely shrink and the government’s ability to pay Social Security will shrink with it.

 

The Second Myth: It’s too early to start saving for retirement. You’re young, you’ve got time!

The truth: The Motley Fool disagrees. And so do we! It’s never too early to start saving for retirement. Period. The more you save, the more comfortable you will be. With intelligent investments, you will be able to create much more wealth over a 40 years than over 30 years.

 

The Third Myth: People don’t spend as much after they retire.

The truth: Barrons says otherwise. When you factor in leisure activities, travel and healthcare, many senior spend that same amount, if not more!

 

The Fourth Myth: I’m going to inherit some money when my parents pass on. I’ll use that!

The truth: With people living longer your parents might need their money. The Financial Mentor also points out that they might become a victim of fraud or a parent may change their will. Hoping for an inheritance is a gamble with your retirement.

 

The Fifth Myth: I’m too old to start saving.

The truth: As Northwestern Mutual points out, you can use catch-up contributions, add additional money to your 401(k) and more in an effort to build up your nest egg.

There are many myths about retirement out there. Throw in the phrase “retirement myth” into your favorite search engine and see what other myths are out there.

When you’re ready to talk about retirement, we’re ready to sit down and talk with you. Contact us today and see how we can help you plan and save for your retirement. It’s never too early or too late to start!