6 Retirement Planning Lies that threaten your Golden years. Retirement often thought of as a far-off and hard to achieve nirvana, here are a few endearing myths that may throw off your financial planning.

By David Rae Certified Financial Planner™, Accredited Investment Fiduciary™

Here are the 6 Retirement Planning Lies that we fool ourselves with.

“I’ll spend less when I retire.”- All the ads showing the perfect retirement show people traveling, golfing, laying on the beach or spending time (aka money) with their grandkids. I bet you spend more money on weekends when you aren’t working, compared to the days you are in the office. Most things you buy now will get more expensive as time goes on. In my experience, most people will spend similar or potentially even more money in retirement. This isn’t even taking into account Medical expenses.

“My taxes will be lower when I retire.”- You may end up in a lower tax bracket. You may also end up with a similar tax bill once everything is said and done. Don’t forget the money you pull from IRA’s or 401(K) will be taxable. Even part of your Social Security may be taxable.

“What’s the point, I’ll never be able to retire”- It’s obviously easier to plan for retirement the earlier you get started. However, it’s never too late to improve your retirement plan and increase your nest egg contributions. If you are 50 or older you can put away up to $26,000 into a 401(K) plan each year. Also the longer you work, the fewer years of retirement you will have to save for. (Even more, if you are self-employed and set up a Cash Balance Pension Plan)

Are any of these retirement planning lies sounding familiar yet?

“I can stop investing once I retire.”- With many people spending 30+ years in retirement, your investing days are far from over when you end your working days. If you quit investing, you can face a great drop in your purchasing power as inflation sets in, or even face running out of money later in life. One of the biggest risks of the stock market is not investing at all.

“I’ll help my kids pay for college before I retire.”- Always remember that there is no financial aid for retirement. You can help your children, but make sure you aren’t sabotaging yourself in the process. While I know student loan debt can be a burden, so is a parent living on their kids’ couch…

“No one really retires anymore.”- I’ve been a fiduciary financial planner for more than a decade and I’ve heard this from quite a few people. I know many people who love their jobs and will continue working as long as they continue to enjoy it. If you don’t want to ever retire, still plan for FINANCIAL INDEPENDENCE– essentially the day that work becomes an option. That way you have the ability to cut back, take the long trips you want and have the funds to maybe even take your career or business on a new path that further stokes your passions.

Don’t let Retirement Planning Lies threaten your financial security.

There is no one size fits all calculator, or formula on when to retire, what you should do to get retired, and how you can stay there. But some of the above myths may back you into a corner. Or they may force you to make choices you don’t want to have to make in retirement. Be smart to work with a trusted Fiduciary Financial Planner to make sure you get the retirement you want and deserve.