Common Misconceptions about Retirement

Retirement ParadiseBaby boomers who are currently in their 50’s and 60’s are beginning to view retirement differently than the previous generations and are redefining what it means to retire.  Which is a good thing as the old model for retirement no longer fits the new reality.

In fact, many boomers will consider retirement as a new opportunity to begin a new career, new hobby, or new passion.  But many have some misconceptions of retirement and need to be aware of the exciting new phase of their lives and the changes that will occur.

Here are some common misconceptions about retirement:

1)      Retirement is like an extended holiday or a 30 year vacation.  Retirement is a transition and is not what you are retiring from, but what you are retiring to. Planning is crucial for a successful journey.

2)      Happiness in retirement is directly correlated to how much money you have.  The biggest key to a successful retirement is good health.

3)      Spending will be consistent in retirement.    Many spend the first few years traveling and spending patterns tend to change over the course of retirement.  As years go by, traveling becomes less while health care and family costs increase.

4)      A life full of leisure must be a good thing.  However, too much free time leaves many retirees feeling depressed and unimportant. Keeping busy is a good thing.

5)      Retirement is a “couples” thing.  Actually, sixty percent of American women over the age of 65 are single, widowed or divorced according to the U.S. Census data.

6)      Financial planning stops at retirement.  There are many issues that need to be dealt with during retirement including continued planning of your investments, estate concerns and issues such as health and family that may arise.

7)       Being together all the time is a good thing.  Married couples face a new adjustment when entering retirement and need to be aware that each partner has their own need for time alone.  

Planning for all of the stages of retirement is key to having a long, successful phase of life.  Plan and enjoy!!

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About Maureen Crimmins

Maureen Crimmins is co-founder of Crimmins Wealth Management and a fee-only independent financial advisor. Have a financial question? ASK MAUREEN

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