Finance Quick Answers
What are some myths people have about retirement savings?
A recent study found that half of all people enter their retirement with less than $10,000 in savings, possibly with the mistaken belief that it will be sufficient to carry them through. There are several myths that have contributed to this belief in retirement mismanagement.
Myth #1: Social Security will take care of
you: Unfortunately, a monthly $1,140 is the average
benefit of a couple--both receiving benefits. Will this
Myth #2: Your retirement will be short: People
who retire at age 65 can expect to live another 18 or
more years. And what happens if you are forced to retire
Myth #3: Your parents will leave you the
money: Your parents are probably facing the same limited
funds that you will. In fact, you may even need to
financially support them at the same time you retire.
Source: "Retirement Myths," Person to Person, July 1998, p. 3
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 28, 2008