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There’s no shortage of opinions, headlines, and advice about retirement, but not everything you read is accurate. In fact, some of the most common retirement beliefs are also the most misleading and can quietly derail your plan if you take them at face value.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® debunks five of the biggest retirement myths and explains what actually matters when planning for your future.

Myth 1: There’s A Magic Retirement Savings Number

Every year it seems there’s a new figure reflecting how much you need to have saved before you can retire. But in reality, there is no universal number. The specific amount you’ll need for retirement depends heavily on your lifestyle, expenses, health, longevity, and personal goals.

The most successful retirees are often not the ones with the largest portfolios. Instead, they are the ones who strategically manage their spending and live within their means. If you’re someone with modest expenses and a reliable income stream, you may need far less than the latest “magic number.”

Myth 2: I’ll Automatically Pay Less in Taxes in Retirement

While some people may end up paying less taxes in retirement, it’s far from a guaranteed outcome. If you’ve built substantial balances in pretax accounts, your taxes may actually increase. This is because the money you withdraw from tax-deferred retirement accounts, like traditional IRAs and 401(k)s, is taxed as income.

Required minimum distributions (RMDs) from these accounts can also increase your taxable income later in retirement. This not only affects your tax bracket, but also taxes on your Social Security benefits and Medicare premiums. That’s why you need to plan properly now before a hefty tax bill hits you in the future.

Myth 3: My Expenses Will Drop Significantly in Retirement

Even though certain work-related expenses may shrink, others often grow in retirement. During this phase of life, you may be spending more money on travel, hobbies, family, or helping children and grandchildren.

Additionally, healthcare can become one of the biggest financial burdens later in life. A 65-year-old couple retiring today may need to plan for around $345,000 in healthcare costs over the course of their retirement.

Myth 4: Social Security Will Cover All My Retirement Income Needs

Social Security was never designed to replace all your working income. For most retirees, Social Security covers only about 40%. On top of that, taxes and Medicare premiums can lower your monthly benefit. That means personal savings, investments, and retirement accounts are still essential for covering the rest.

The good news is that you may not need an enormous portfolio to fulfill your income needs. If Social Security covers most of your monthly costs, even a moderate nest egg may be enough to bridge the gap.

Myth 5: Medicare Will Cover All My Healthcare Costs

Contrary to popular belief, Medicare does not eliminate your healthcare expenses in retirement. Depending on the type of plan you have, there are premiums, out-of-pocket costs, and coverage gaps. Most importantly, Medicare generally does not cover long-term care services. Those costs can be substantial, which is why it’s crucial to plan for them separately.

Retirement planning is highly personal, and requires an understanding of your own income, expenses, risks, and goals. We can help you build a strategy around that reality, not around common myths.

Want practical guidance on preparing for retirement? Get your free copy of The People’s Retirement Handbook by texting “BOOK” to 800-757-0436.