5 Retirement Planning “Truths” You Might Want to Rethink

(Or: How to Not Accidentally Retire into a Panic Attack)

Planning for retirement is stressful. It’s like planning a wedding that lasts 30 years — except nobody throws you a party, and the only gift you get is arthritis.

But here’s the thing: a lot of what we think we know about retirement planning comes from stuff we heard growing up. Like, “Buy a house, pay it off, and everything will be fine.” Or “Social Security will cover it.” Or “You’ll spend less when you’re retired because you’re staying home all the time.”

Spoiler alert: not always true. Let’s bust a few myths — and by “bust,” I mean gently reconsider them, because I’m not here to ruin your day.

1. “You should always pay off your mortgage before you retire.”

My granddad used to say, “Debt is bad. Always pay it off.” Which sounds great…until you realize he bought his house for $19,000 and never heard of avocado toast.

Here’s the truth: if you’ve got a mortgage with a low interest rate — like 3% — and you can invest your cash and maybe earn 5-7% over time, paying off the mortgage might actually cost you money in the long run. Plus, having that cash gives you flexibility for emergencies…or for when you decide you’re definitely going to buy an RV and travel the country until you realize you hate driving an RV.

Reconsider: It’s not just about being “debt-free.” Sometimes, having a low-rate mortgage and extra cash on hand is the smarter move — even if your inner Dave Ramsey fan just fainted.

2. “I’ll spend way less money in retirement.”

People love to tell me, “Oh, I won’t spend much when I retire. I’ll just sit on the porch and drink iced tea.” Okay, but have you met yourself? You’ve been working for 40 years, and suddenly you have free time. You’re not just drinking iced tea; you’re booking cruises, picking up golf, and spoiling grandkids who somehow already have iPhones nicer than yours.

Most retirees actually spend more in the first decade. Travel, hobbies, home projects — it adds up. Then healthcare sneaks in like a ninja later on, and suddenly you’re thinking, “Why is this Tylenol $14?”

Reconsider: Budget for at least 80-100% of what you’re spending now, especially at the start. You’re not magically becoming frugal just because you retired.

3. “Social Security will cover most of my expenses.”

This one hurts. People think Social Security will take care of everything. Then they see the check. It’s like expecting a winning lottery ticket and getting a $20 gift card to Applebee’s.

The average benefit is about $1,900 a month in 2025. That’s helpful, but it’s not “move to the beach and drink margaritas all day” money. And if you claim early, your benefit can get permanently reduced by up to 30%. That’s like saying, “I’ll take dessert now,” and they hand you one cookie instead of a cake.

Reconsider: Treat Social Security as a supplement, not your whole plan. Make sure you understand when to file, because timing can make or break your retirement income.

4. “I’ll just withdraw 4% a year, and I’ll be fine.”

Ah, the famous 4% rule. It’s like the duct tape of retirement advice — it works for a lot of things, but not perfectly. The rule says you can take out 4% of your portfolio each year and probably not run out of money.

But here’s the problem: it’s based on data from the 1990s. Back when gas was a dollar and no one was paying $6 for a coffee. Inflation, market swings, and living longer all mess with that rule now. If you’re retired for 30 years, you can’t just set it and forget it like a Crock-Pot.

Reconsider: Use a flexible plan — withdraw more in good years, less in bad years. Adjust for markets, taxes, and life changes. Basically, be ready to pivot like Ross with the couch in Friends.

5. “I should avoid the stock market once I retire.”

This one feels safe. People think, “I can’t afford to lose money now — I’ll just put it all in cash.” Which sounds smart…until you remember inflation. That $100 bill under your mattress will buy you less every year. Eventually, you’re the person saying, “Remember when gas was cheap?” while crying at the pump.

You’ll probably be retired for 20-30 years. That’s a long time to hide from growth. You need at least some money invested in the market so your nest egg keeps up with rising costs.

Reconsider: Keep a balance of safe money and growth money. That way, you can ride out bad years without panicking every time the news mentions the Dow.

Final Thought

Retirement isn’t about following blanket rules — it’s about finding what fits your life. The old advice might have worked when houses cost $50,000 and people retired at 62 and lived to 70. But now? We’re living longer, spending more, and apparently need subscriptions for everything (why is my fridge asking me for a password?).

So, don’t assume what’s “always true” for retirement. Ask questions, run the numbers, and make sure your plan fits your reality, not your uncle’s Facebook post.