But not all the things you have heard about saving for retirement is necessarily correct. Courtesy of NBCNews.com, here are five of the most common myths about saving for retirement:
1/ Saving for retirement can wait – The earlier you start saving, the longer the money has to grow. So don’t delay at all if possible.
2/ Medicare covers all medical problems – Medicare covers about half of the average seniors’ healthcare needs, according to NBC, but it won’t cover everything.
3/ You will spend less in retirement – There’s no magic formula that applies to everyone; instead, your retirement savings will depend on what kind of lifestyle you are looking forward to.
4/ There’s no consequences to taking Social Security early – Americans can start receiving their Social Security checks at the age of 62, but you won’t receive as much money; in fact, as much as 25% less.
5/ Buy more conservative investments with age – This advice isn’t as relevant as it was decades ago, now that life expectancy is longer than ever before. To pay for a 30-year retirement, sometimes aggressive investments are necessary.