Let's discuss those retirement planning myths that might be holding you back. You know the ones: "I'm too old to start saving" or "Social Security will take care of everything." These common misconceptions prevent too many people from taking that first step toward a secure retirement.
At City & County Credit Union, we've heard every retirement planning myth out there — and more importantly, we've helped countless members move past these roadblocks to build confidence in their financial futures. It's time to set the record straight on some of the most persistent retirement planning myths.
Remember that saying about the best time to plant a tree? The best time was 20 years ago, but the second best time is now. The same goes for retirement savings.
Here's the truth: While starting early is ideal, it's never too late to begin building your nest egg. Thanks to catch-up contributions after age 50, you can actually save more in your retirement accounts than younger workers. The IRS allows additional 'catch-up' contributions to both 401(k)s and IRAs once you reach 50, giving you extra room to boost your retirement savings.
Remember, many successful retirees start their serious savings later in life. What matters most isn't when you begin, but that you're taking action to secure your future.
Social Security was designed to replace about 40% of your pre-retirement income — and for many people, that's just not enough to maintain their lifestyle. Think of Social Security as just one piece of your retirement puzzle, not the whole picture.
Building a comfortable retirement means creating multiple income streams. Consider this approach:
The key is starting early with whichever options work best for you, then gradually expanding your retirement portfolio as your circumstances allow.
"Isn't it risky to invest when I'm closer to retirement?" We hear this concern often, but smart investing isn't about age — it's about strategy.
Think of your retirement portfolio like a well-planned road trip. You need different preparations for different parts of the journey. The money you'll need soon might go into more conservative investments, while funds you won't touch for years can be positioned for potential growth.
The goal isn't to eliminate risk entirely — it's to manage it wisely. That's why we help our members create balanced portfolios that align with both their timeline and comfort level.
Good news: You don't need a wealthy relative to build a comfortable retirement nest egg. We've seen countless members create substantial retirement savings through consistent contributions and careful planning — no inheritance required.
Here's your blueprint for success:
Remember, successful retirement saving is more about consistent habits than one-time windfalls.
Planning to work during retirement might seem like a solid backup plan, but life has a way of throwing curveballs. Health challenges, family responsibilities, or changes in the job market can impact your ability to work later in life.
Instead of counting on future income, focus on building flexibility into your retirement plan now. Create an emergency fund specifically for retirement years and consider long-term care insurance options while you're younger and rates are lower. Developing multiple income streams that don't rely on your ability to work can give you more security and peace of mind.
The goal isn't to discourage working in retirement — many people find part-time work fulfilling. Rather, it's about ensuring you have choices. Wouldn't it be better to work because you want to, not because you have to?
At City & County Credit Union, we understand that retirement planning can feel overwhelming — especially with all these myths floating around. That's why our investment team specializes in turning retirement concerns into confidence. We work with members at every stage of their savings journey, from those just starting out to seasoned savers fine-tuning their strategy.
Our approach is simple: We listen to your goals, understand your current situation, and help create a personalized plan that works for your life. Whether you need help choosing the right retirement accounts, developing an investment strategy, or simply want to understand your options better, our team is here to guide you every step of the way.