Retirement Fake News: Do Not Fall for These 5 Myths


Have you ever heard about this retirement fake news before?

When it comes to fake news, you do not expect it to be about retirement.

However, retirement fake news is rampant online, and a lot of these myths are just impressions that people either made up or are misinformation that has been taken up as truth in the last few years.

The problem with these pieces of retirement fake news is that people who are close to retirement or even who have reached that age end up believing them and that they cannot have a successful, relaxing, and happy retirement.

The truth of the matter is that you can have a happy retirement and make your golden years amazing in spite of all these pieces of misinformation.

Today we have brought together some of the most commonly believed retirement fake news stories and debunked them so that you can put your worries aside and look forward to a fulfilled retirement.

From how much money you truly need to lies about Social Security, make sure you keep reading to discover what retirement fake news has been wreaking havoc online!

Have you heard any of this fake news before? Is there another piece of information that you think is quite far-fetched but that everyone believes? Let us know your answers in the comments!

retirement fake news
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You need a minimum of $1 million to retire happily.

You often see this sum paraded around as the best if not the minimum required nest egg that is going to ensure that your retirement is going to be comfortable.

Other places tout an even bigger sum as the minimum, and it can be jarring to see it when you may not have managed to save as much money.

While some may find this sum helpful as an amount that they can aspire to save, and it is a good goal to have in mind, keep in mind that it is not the end-all-be-all sum for your retirement. Not two families are the same, so not two retirements will look the same either.

This can mean that even if you have $1 million in savings, it can end up not being enough for your retirement needs. Likewise, it can prove to be way too much for what you ultimately need.

There are a lot of factors that make up the amount that you are going to need in order to have a comfortable and happy retirement, but focusing on a certain amount is not going to help you.

rather, it is going to be a stressor if you cannot reach that amount only to end up not needing it or it can end up not being enough in the long run.

Based on your necessary monthly income, along with how you are investing and how much you leave each month for discretionary spending, you are going to need to make up how much you will need monthly in retirement.

The good plan is to make sure that you save as much as you can for retirement—how much is comfortable for you—instead of focusing on one amount!

Social Security is going to disappear.

Lately, there have been a lot of fears surrounding this topic in particular. This is due to some calculations that have been made that have revealed that the benefits that are coming out of the program are greater than the amount of money that goes into the program.

Thus, people have been thinking that we are going to see the end of this governmental aid program in the next decade at most. Yet, this is not what officials are saying, and there is no need to believe that you will not be able to benefit from this program if you need to when you reach retirement.

The Social Security Administration, which is in charge of the Social Security Benefits, has come out to assure the American public that the aid received through the benefits is expected to be payable in full without delays up until 2037, so there is nothing to fear.

There have been no talks about discontinuing the program, but there have been talks about adjustments to be made in the following years so that the program will get more support and funds.

Some of the changes on the table include an increased payroll tax rate and a benefit reduction, but nothing has been set in stone. So either thinking Social Security is done for or that the changes mentioned are true is just fearmongering.

retirement fake news
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Financial problems will go away if you downsize.

There is a lot of value in downsizing for retirement, but those who say it will make retirement a breeze are just vehiculating fake news.

When you downsize, especially if you have been taking care of a large home, it is going to help you reduce your expenses and take care of a part of the financial burden that could come along with having a few people in a big home.

What’s more, selling the larger home is going to leave you with more funds even after you get a smaller one. Yet, it does not mean that you will be set or that your retirement is going to be a walk in the park.

There are a lot of things that could make your years difficult, from health issues to other issues, but downsizing can help you be a little more financially secure while seeing what retirement will bring about.

Likewise, it would help if you were no longer in debt to retire.

It is not a requirement, but everyone talks about how having no loans or debt to repay is going to ensure that you are comfortable in retirement.

Yet, this can lead you to rush to pay your loans and mortgages off before you reach retirement age, and this can end up proving to be a bad financial decision. A lot of older adults have rushed to pay their mortgages, which has left them with most of their net worth tied up in their homes.

That money is not for their disposal but rather for an asset that is not going to help them in case they are going to be stripped of cash.

It may be a great thing to end up entering retirement debt-free, but you need to make sure that you do that without making any bad choices when it comes to investment and savings.

You should not ruin your investments or your savings plan while also working to pay off any loans or credit card debt.

Sure, it can end up meaning you have less to spend for your enjoyment, but it can pay off in the long run if debt-free retirement is your overall end goal.

Finances for your retirement are important, so you should be prepared for anything. Hence, you should be as prepared as possible. This book from Amazon is affordable, and it talks about how you can prepare your finances in simple ways that anyone can understand and apply.

retirement fake news
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Retirement will be cheaper.

This may be one of the biggest retirement fake news stories out there. It is easy to think that your expenses are going to be cut down by a lot once you no longer have to work. After all, you no longer have to spend extra money on work clothes; there is no need to worry about lunches on the go, and you can cut down on commute money as well!

However, while these expenses are going to disappear, others are going to appear that may end up replacing them. You may find yourself having to spend more on the likes of health care, and your work expenses may be replaced with leisure activities or new hobbies.

You should not think about it as extra money you get to save, but rather that your priorities and activities change, so your money will be going towards another goal.

Chances are that as a couple, you may end up planning to spend less but doing the opposite. You should make a point out of not only relying on what you heard about retirement and wing it, but rather plan accordingly to your finances and wishes so that you have the best retirement for you!

While downsizing will not solve all of your financial problems, it can be a source of income and help you get into a better financial spot if you do end up downsizing. If you want to read all about the best advantages of downsizing in retirement, read our article here!

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