10 retirement myths and the facts that dispel them

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Here’s a look those myths and the realities and some reaction to those realities.
Myth: People need to replace 100% of their preretirement income in retirement.
Reality: Most people need between 65% to 85% to be secure, says Boston College.
My thoughts: This is and will likely continue to be one of the great debates of the early 21st century. Many organizations and experts generally agree with Boston College, but increasingly experts say people should consider replacing 100% of their preretirement income, especially in light of longer life expectancies and potential health-care costs.
The debate around how much income Americans need to replace is more than academic. In fact, the degree to which Americans replace the right amount is the degree to which they maintain the same standard of living in retirement as they had prior to retirement.
There are, however, other studies that suggest that none of it matters as much as academicians would have us believe, that people generally adapt to their circumstances without any adverse affects. For instance, I can recall at least one study that showed that people ultimately adjust their lifestyle to whatever their income is in retirement and that they remain generally happy with their retirement despite a lower standard of living.
Myth: People will have enough resources to meet their needs when they retire.
Reality: Almost 45% of working-age households are at risk of failing to meet this objective, according to the center’s new National Retirement Risk Index.
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