Be careful with what you think you know about retirement finance.

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."

photo: GettyImages

Human Hand Drawing Retirement Plan Growth Concept

The rules for Saving for Retirement may be different than what you think you know!Photo: Getty Images

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