A quick Google search of the word “retirement” delivers more than 2 million results in 0.70 seconds. With all the information out there, it’s expected that some web pages are misleading or simply not true.
Because it can be challenging to determine which among the plethora of information is accurate and which isn’t, Central Coast Financial Planning Group – your trusted financial adviser on Central Coast, is here to debunk some of the myths about retirement planning:
Myth #1: You’ll Be Spending Less When You Retire
While it is true that you may no longer have to shell out for things like a work wardrobe or commuting costs, there are plenty of other expenses that can crop up in retirement.
For example, you may find yourself travelling more, taking up new hobbies, or eating out more often now that you have the time; and, of course, don’t forget about the ever-present healthcare costs.
All of these things can add up, and before you know it, you could be spending just as much, if not more, when you’re retired than you were while working. It all comes down to your budget and how strongly you adhere to living within your means.
Myth #2: Your House Is Your Retirement Plan
While it’s true that your home can be a valuable asset, it’s important to remember that it’s also a liability. Like any other asset, your home can go up or down in value; and, unlike other assets such as shares and bonds, your home doesn’t generate income.
So, while your home can be a part of your retirement plan, it shouldn’t be your only retirement plan.
Myth #3: You’re Too Young to Think About Your Retirement
There are many myths about retirement, and one of the most common is that you’re too young to start thinking about it. This couldn’t be further from the truth.
The earlier you start saving for your senior years, the more time your money has to grow. If you start soon enough, you can take advantage of compound interest, which can help your savings grow even faster.
Even if you can only save a small amount each month, it’s crucial to start as soon as possible. Every little bit helps and will make a big difference down the road.
Myth #4: You Can Plan for Your Retirement on Your Own
The biggest myth about retirement planning is that you can do it all on your own.
The truth is, you can’t.
It’s recommended that you work with a financial professional to create a retirement plan that’s right for you.
It’s because there are many factors to consider when planning for retirement. You need to consider how much money you’ll need to live on, how to invest your savings to grow them, how to minimise taxes, what regulations and incentives should you capitalise on, and more. An experienced financial professional can guide you as you navigate these complexities and create a retirement plan that meets your unique needs.
Seek Expert Advice When It Comes to Your Retirement
At the end of the day, you must do your own research and not believe everything you hear about retirement. There are a lot of myths and misconceptions out there, not to mention outdated information, so you need to be informed. There is no one-size-fits-all approach to retirement planning, so talk to a financial advisor on Central Coast to figure out what’s best for you.
Retirement can often seem a long time away, but the sooner you start planning for it the better. Central Coast Financial Planning Group offers sound retirement advice from expert financial advisers on the Central Coast. Call us or book online to secure your complimentary first meeting with our advice team today!
DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.