It’s meant to be the period to relax and wind down following years of hard work, but fail to plan and retirement can be an absolute disaster.
It doesn’t matter whether you live in Oswestry or Sundorne, the same problems will still exist – as do certain myths that can wreak even more havoc with your post-work life.
It’s that last point that we are now going to focus on. Take a look at the following myths to ensure that you avoid the common retirement traps that are blighting so many people nowadays.
"My financial situation will almost remain the same"
Like a lot of the myths associated with retirement, this one is bordering on the understandable.
After all, once you stop working, you will immediately kiss goodbye to those annoying expenses like commuting costs, work wear and everything else that you pay with your job.
Of course, as well as losing the expenses, you also lose the income. While your income is highly unlikely to drop to zero (unless there has been years and years of mismanagement), it is still all but certain to drop in some regards. In fact, one study found that the average retired person would see their income drop by 52%. Its decreases like these which well and truly dwarf the expenses that you'll no longer be forking out for.
"I won't need as much money once retirement arrives"
This one is probably one of the stranger misconceptions, yet it's still one that is regularly used by the newly-retired.
With a lot more free time available, you'll also have much more free time to spend money. As well as this, you will suddenly start to incur expenses that might not have otherwise existed. Some people will notice their insurance premiums increasing, while others might have the foresight to plan for the likes of funeral arrangements to cut down costs for their family in the future.
All in all - you are unlikely to need less money than you do currently.
"If I don't have enough money - I can keep on working"
This is one of those typical "did you know" answers. While some people might think that they can bail themselves out by simply working longer, there's every chance that this won't be possible. Contrary to popular belief, the most common reason for retirement is ill health or injury. In other words, it's not because people "want" to or "feel the need" to retire - it's simply because circumstances dictate otherwise.
As such, continuing to work to pay the bills just might not work out.
"There's nothing to worry about if the mortgage is paid"
If your mortgage has been paid off, a lot of people believe that they are in the clear. While it's true that the main source of expenditure has suddenly disappeared, let's not forget that it doesn't cover your other expenses. In other words, your house isn't going to pay the bills - even if it might be able to bail you out in extreme circumstances if you need an injection of money later down the line.