People say that life truly begins after retirement, but for it to be an enjoyable one, many believe that they need to plan well for retirement. However, there is no one-size-fits-all solution when it comes to retirement planning. Even taking quizzes online to help you prepare for retirement can be unhelpful because though the questions posed are situational, people commonly refer to them as a must-do list. So, before you embark on a retirement plan, let us debunk four myths about retirement.
Myth 1: You Cannot Work Again
If you think retirement means that you will never step foot into the working world again, think again. A study of the Labor Department data by Nick Bunker, an economist at Indeed, shows that over a million retirees have returned to work after the pandemic. Instead of spending their time leisurely, seniors seem to be more enticed by the evolving work environment and see it as a way to remain active by putting their skills and experience to use. Regardless of the reasons, this development debunks the myth that retirees cannot re-enter the workforce. Simply put, retirement may just open many new doors.
Myth 2: You Can Only Retire after a Certain Age
Previously, turning 65 would mean you’re ready to cash your Social Security check. But retirement looks different these days. People choose when they want to retire, and the retirement age can range widely. According to the Employee Benefit Research Institute (EBRI), only one in four Americans aim to retire at 65, while the rest are split between early birds before 65 or above 65. There should be no pressure to retire at a certain age. If you feel that you are ready, you should not be swayed by the opinions of others.
Myth 3: You Can Only Rely on Others for Support
It is comforting to know that you will receive financial support in your retirement years. But you must not be reliant on others, especially your company, for insurance benefits. Retiree health benefits are declining, with only 13% of all private sector employers being offered retiree medical benefits. Businesses are having a tough time increasing health insurance premiums, hence retiree health coverage has been heavily reduced. Furthermore, with an increasing number of nuclear families migrating to urban areas, seniors may be left to fend for themselves. So, it is crucial to take responsibility for your retirement needs and not rely on the people around you.
Myth 4: You Can Only Plan for Retirement in Your Senior Years
Today, retirement is no longer synonymous with ‘old’. Even if you are young and chasing your dreams, with retirement being the last thing on your mind, it is never too early to start planning for your golden years. Moreover, starting with small investments each year allows you to build a sizable nest egg by the time you retire. By planning early, you will have a longer time frame to realize your financial goals and enjoy the fruits of your labor later in life.
Financing a Move to a Retirement Community
Retirement should be something you look forward to, and you should not feel heavily burdened when planning for it. The key is to start early. If you are planning to move into a retirement community when you retire, the cost of moving into one and the monthly expenses of staying in one should also be taken into consideration. If you have questions about financing for a retirement community in your golden years, contact us today!
