There are some common misconceptions about retirement and Russell Gloor, the National Social Security Consultant for the AMAC Foundation, has some basic corrections. He also suggests you consult a retirement counselor for specific advice about planning your financial retirement.
1. The 4% rule guarantees you won't run out of money
Gloor: "The reason this is a fallacy is that everyone doesn't have the same amount of money. 4% yearly of $50,000 is a whole lot harder to live on than 4% of $250,000.
2. Social Security will fully support you
Gloor: "Social Security was never meant to replace more than 40% of your retirement income. Most financial advisors will tell you need to have 80% of your pre-retirement income after you retire. People who live strictly on their social security are probably living below the poverty level."
3. 65 is the standard retirement age
Gloor: "The government put a change in back 1983 to gradually raise the full retirement age from 65 to 67 over a period of a couple of decades. Financial advisors will tell you they have clients who don't want to retire at that age and other clients who are ready to retire at 50!"
401-Yay! Americans Still Saving for Retirement
4. It's enough to save 10% of your income for retirement
Gloor: "It's certainly better than not saving anything at all --- but it's certainly not going to get you to the Million Dollars you'll probably need for retirement!"
5. Medicare will fully pay for your health care
Gloor: "That's a complete fallacy. Medicare was never intended to pay for all of Aging America's medical bills. Part A covers hospitalization. Part B covers things like preventive services. Medicare usually covers about 80% of those services. So many medical services like dental and hearing, are not covered."
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The rules for Saving for Retirement may be different than what you think you know!Photo: Getty Images