Ideally, retirement is an idyllic time during which you can relax and do all the things that you’ve always wanted to do. But getting to the point where you can pay for the retirement you want isn’t easy; it requires hard work and sacrifice during your working years. And if you fall for any of these common retirement myths, then all that effort you put into saving over the years may be for naught.
1. 65 is the right age for retirement
Once upon a time, 65 was considered “full retirement age.” This was the age when many people both retired and filed for Social Security benefits, because they were now entitled to receive the full benefit amount for which they were eligible. However, as the average lifespan has climbed, the Social Security Administration has pushed the full retirement age forward a bit. If you were born between 1943 and 1954, your full retirement age is 66. For those born in the following years, retirement age creeps up by two months per year, meaning that someone born in 1955 would have a full retirement age of 66 years, two months. Everyone born after 1959 has a full retirement age of 67. If you claim Social Security at age 65 under the mistaken belief that that’s the best time to file, your benefits will be permanently reduced because you claimed them before your actualfull retirement age. And without the help of Social Security benefits, most people wouldn’t be able to afford retirement at age 65 without putting a dangerous strain on their retirement savings.