When looking ahead to retirement, it’s natural to be filled with a mixture of excitement and optimism—after all, this phase of life is referred to as the “golden years” for a reason.

However, preparation is essential to maintaining the financial stability you need to truly enjoy it, and that begins with being well informed. Here’s a breakdown of six common myths surrounding retirement along with practical, fact-based tips to consider instead.

Myth #1: Your expenses will decrease postretirement.
Fact: Your expenses during this time may actually remain steady. While commuting and work-related costs may decline, those related to health care, travel, home maintenance, and leisure activities can often go up. In fact, the Motley Fool reports that retirees’ households may technically end up spending more than working households due to the difference in the number of people living there—1.7 to 2.5, respectively. This may or may not apply to you, but such a possibility means you should be detailed in assessing your expected expenses in retirement and err on the generous side when choosing your target savings number. It’s always better to be safe than sorry, especially when it comes to your finances.

Myth #2: You should claim Social Security as soon as you’re eligible.
Fact: You can claim Social Security starting at age sixty-two, but doing so could permanently reduce your monthly benefits. Conversely, waiting until your full retirement age (sixty-six to sixty-seven, depending on your birth year) results in receiving the full amount, and delaying brings an increase of 8 percent per year until age seventy. In sum, the difference between claiming at sixty-two versus seventy could be a little over $1,000 per month! So if you’re in good health and have other sources of income, postponing your benefits can significantly improve your long-term financial wellness.

Myth #3: Social Security will be enough to live off of.
Fact: Social Security is not designed to be a sole income stream. In May 2025, the average monthly benefit for retired workers went just over $2,000 for the first time, which barely covers rent in many cities—let alone health care, food, transportation, and leisure. Financial experts often estimate that retirees need at least 70–80 percent of their preretirement income to sustain their lifestyle, and that means having additional savings in 401(k)s, IRAs, pensions, or other investment vehicles. In other words, treat Social Security as a supplement, not a complete solution.

Myth #4: The 4 percent rule is absolute.
Fact: This principle suggests that you should have enough retirement savings to be able to withdraw 4 percent the first year and that same dollar amount for the next thirty years. However, it’s more a helpful guideline than a one-size-fits-all approach. Market volatility, longevity, inflation, and changing expenses can all affect how sustainable this withdrawal rate really is. Many financial planners now suggest enacting more flexible strategies, such as varying how much you take out each year based on market conditions, to avoid overspending or running short.

Myth #5: Your taxes will decrease.
Fact: Don’t be surprised if you still owe a significant amount in postretirement taxes. For instance, withdrawals from accounts you contributed pretax dollars to, such as traditional 401(k)s and IRAs, are taxed as ordinary income, and up to 85 percent of your Social Security benefits may be taxable, depending on your total annual retirement income. And if you have rental properties, dividends, or part-time income, those earnings can even push you into a higher tax bracket. Consider tax planning with a professional to help you plan accordingly and possibly find ways to save.

Myth #6: Medicare will fund all your health expenses.
Fact: Though Medicare provides essential coverage, it doesn’t pay for everything; most dental care, hearing aids, and eye exams, for example, are largely excluded from Original Medicare (Parts A and B). According to Fidelity, the average person can expect to spend approximately $165,000 on their health care throughout retirement—not including long-term care. Budgeting for out-of-pocket costs and considering supplemental insurance are crucial to avoiding unpleasant financial surprises.

A smarter approach

The best retirement strategies are built on a solid foundation of accurate information, realistic expectations, and continuous planning. Whether you’re years away or nearly there, take the time to review your approaches, speak with a trusted financial advisor, and stay informed about market changes. With the right knowledge and preparation, your golden years can be every bit as fulfilling as you’ve imagined—without the financial surprises.