ORLANDO, FLA. (Ivanhoe Newswire)– A new study from the employment benefit research institute found about half of Americans have struggled or are currently struggling with their retirement finances. So how can you make sure you’re not one of them? Here are some retirement myths you need to know about retirement mistakes.
Scott Perrone, a Certified Financial Planner and Advisor at Retirement Orlando says, “It’s imperative to start planning sooner rather than later.”
Don’t underestimate your lifespan. Research shows the average American will retire at age 66 and live until nearly 79. Experts suggest planning for at least 20 years of income, and some say 30. Also, don’t assume you’ll spend a lot less.
“When you’re retired you have more time on your hands. So, you have a more likelihood to eat out, travel, hobbies and various things that cost money.” Perrone warns.
Also, don’t expect Medicare to cover all of your health expenses. The average 65-year-old couple will spend 300 thousand dollars on healthcare during their retirement. And have you ever heard you can withdrawal up to 15 percent of your nest egg each year? The safer bet is to follow the four percent rule… Which allows you to take out four percent out of your accounts in the first year of retirement and increase withdrawals each year based on inflation. Don’t fall for one of the biggest misconceptions. According to a fidelity study, more than half of the respondents believe they’ll need five times their final salary to retire. The real number is 10 to 12 times your final salary invested before leaving the workplace. Retirement mistakes.
Don’t wait to make a plan. One survey by Bankrate found the biggest financial regret of Americans was waiting too long to save for retirement. To build a one-million-dollar nest egg by age 65, you would only need to save 381 dollars a month starting at age 25. But that jumps to 5,778 if you start at age 55!
Sources:
https://www.investopedia.com/articles/retirement/110116/6-surprising-facts-about-retirement.asp
https://www.fool.com/retirement/2021/11/09/dont-buy-into-these-dangerous-retirement-money-myt/
https://www.investopedia.com/articles/retirement/110116/6-surprising-facts-about-retirement.asp
Contributor(s) to this news report include: Julie Marks, Producer; Roque Correa, Videographer and Editor.
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