6 Common retirement myths that can keep you stuck—and what to do instead

Retirement was supposed to be the finish line, the reward for all those years of hard work. Instead, for many of us, the closer it gets the more confusing and uncertain it feels. Questions creep in: Am I really ready? Am I saving enough? Am I doing this right?

Often, the challenge isn’t just numbers—it’s the stories we tell ourselves. From a “magic number” to assumptions about spending or timing, myths about retirement can quietly hold us back. They create doubt, delay, and unnecessary stress—even for those who are careful, responsible, and financially literate.

Let’s regain some clarity by unpacking / exploding six of the most common retirement myths. Let’s unpack and dispel six of the most common… Each one can subtly distort decisions, reduce confidence, or make retirement feel more distant than it really is. Understanding these myths—and reframing them—can give you clarity, flexibility, and a sense of control over your retirement journey.

Myth #1: You Need a Specific “Magic Number” to Retire

Many people believe retirement only becomes possible once they reach a single savings target—the so-called magic number. Until then, retirement can feel out of reach.

Why This Myth Is So Common

• Headlines promote round, memorable figures
• Online calculators produce a single output
• Comparing yourself to others creates false benchmarks

Over time, retirement starts to feel like a pass-or-fail test.

Why This Thinking Can Hold You Back

• Ignores flexibility in spending and lifestyle
• Assumes life will remain static for decades
• If the number feels unreachable, planning often stalls

In many cases, people aren’t unprepared—they’re measuring readiness the wrong way.

What Matters More Than a Single Number

• Reliable income sources
• Flexibility in spending and timing
• How long assets need to last—not just how large they are

Two people with the same savings can experience very different retirements.

A Better Way to Think About Retirement Readiness

Instead of asking, “Have I hit the magic number?” a better question is:

“Do I have enough flexibility and income to support the life I want, with room to adjust?”

This shift replaces pressure with perspective. Retirement becomes a range of options—not a single intimidating threshold.

Myth #2: You’ll Spend Much Less Money in Retirement

Many assume expenses naturally shrink once work ends. No commute, no professional wardrobe, fewer daily costs—it sounds logical. But for many retirees, the reality is more nuanced.

Why This Myth Feels So Reasonable

• Paychecks stop, so it feels natural to assume spending follows
• Some costs do decline or disappear
• Traditional retirement stories emphasize “slowing down”

It’s a reasonable conclusion—but incomplete.

How Spending Often Changes Instead of Shrinking

• More spending on travel, hobbies, and experiences
• Higher healthcare and insurance costs over time
• Increased home-related expenses as more time is spent there
• Financial support for adult children or ageing parents

Retirement doesn’t eliminate spending—it reshapes it.

Why This Myth Can Create Problems

• Underestimating expenses can result in having to be more conscious about spending in retirement or not being able to do the things you hoped to do
• Overestimating expenses can make you over-cautious about spending on the things you enjoy, or unnecessarily delaying retirement

A More Practical Way to Think About Spending

• Focus on different, not just lower, expenses
• Identify costs likely to fade vs. those likely to increase
• Build flexibility into plans so you can adjust spending over time and respond to fluctuations
• Prioritize what matters most to you

What This Means for Confidence

Realistic spending assumptions provide a clearer picture of what your retirement can look like. This will also help avoid sleepless nights from unexpected bills and similar nasty surprises.

Myth #3: You Have Plenty of Time to Figure Retirement Out Later

It’s easy to postpone planning when retirement feels far away. Many assume they can figure it out after the next raise, the next milestone, or other significant life change.

Why This Myth Is Easy to Believe

• Retirement is years—or decades—away
• Other priorities feel more urgent
• Details feel complex and overwhelming

How Delay Quietly Limits Your Options

• Fewer years to adjust course
• Less room to recover from market downturns and less time to benefit from compound interest that can dramatically increase savings
• More pressure to make big decisions quickly

Why This Creates Stress

Many of us feel urgency or anxiety later, even if we’ve saved consistently. Time is one of the most valuable, non-renewable assets in retirement planning.

A More Productive Perspective

• Planning early is about momentum, not perfection
• Small, adjustable steps build options over time
• Decisions feel calmer when started sooner

Myth #4: Retirement Is an All-or-Nothing Decision

Many imagine retirement as a single moment: one final day of work, then a complete stop. In reality, retirement is often a gradual transition.

Why This Myth Persists

• Traditional retirement stories focus on a fixed end date
• Pensions historically encouraged a clean break
• Cultural narratives frame retirement as an “exit”

How This Belief Can Limit Your Choices

• People delay retiring because the step feels too final
• Flexible or part-time work opportunities are overlooked
• Skills, interests, and income potential go unused

A More Flexible Way to Think About Retirement

• Reduce hours or responsibilities gradually
• Pursue consulting or project-based work
• Work for purpose rather than income

What This Means

Seeing retirement as adaptable turns it from a heavy decision into a range of evolving options.

Myth #5: Playing It Safe Is the Best Way to Protect Your Retirement

Many assume avoiding market risk entirely is safest. But avoiding risk completely can create new dangers.

Why This Myth Feels Sensible

• Market swings feel threatening, especially near retirement
• Headlines amplify short-term fears
• Stability feels safer than uncertainty

The Risk of Being Too Conservative

• Portfolios may struggle to keep up with inflation
• Purchasing power erodes over time
• Long-term growth may fall short

A Balanced Perspective

• Consider time frame alongside risk
• Align income needs with growth potential
• Use diversification rather than avoidance

What This Means

Deliberate risk management makes markets less intimidating, not more. Confidence comes from strategy, not avoidance.

Myth #6: Once You Retire, the Plan is Set

Some assume retirement planning ends the day work stops. But life continues to change and you continue to have options.

Why This Myth Is Misleading

• Health, markets, and priorities evolve
• Static plans can quickly fall out of sync with reality

Why Ongoing Adjustment Matters

• Spending patterns shift
• Income sources change
• Opportunities or challenges emerge

A More Realistic Perspective

• Review assumptions periodically
• Make incremental adjustments
• Respond thoughtfully, not reactively

What This Means

Expecting change turns adjustments into normal steps. Retirement feels steadier, not riskier.

Turning Myths into Clarity and Confidence

Retirement doesn’t have to be confusing, stressful, or “all-or-nothing.” By challenging these six myths, you can begin to see your options more clearly, plan intentionally, and make decisions with confidence rather than fear.

The truth is, retirement is not about hitting a single number or avoiding every risk. It’s about creating flexibility, understanding your priorities, and building a plan that adapts as life changes.

Closing reflection

Think for a moment: which myths have shaped your thinking about retirement? Which assumptions might be keeping you stuck? Awareness is the first step toward action—and even small adjustments today can unlock freedom and peace of mind tomorrow.

Retirement isn’t a fixed target you either hit or miss. It’s more like a course you can adjust as you go. If one of these myths has been shaping your thinking, even a small change in direction now can make the road ahead feel a lot clearer.

Please note: The opinions stated in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. All information has been derived from sources believed to be accurate. It is highly recommended to seek financial advice before making major decisions about your pension and work status.