Myth 8: I Have other financial priorities
There will always be other things that require immediate attention. Or so you think. In truth, your future, which includes retirement, should be your top priority. Â Buying a new car, paying off student loans and credit card debt should not stand in the way of you making contributions for your retirement, no matter how small. That small amount will mean a lot more in the future.
Remember that retirement funds are tax-deferred, therefore the money you put into those savings accounts is not subject to income taxes. On that note, check out these 14 States Where Your Pension Won’t Get Taxed either.
Myth 9: Social Security can cover my expenses
For years, a part of your paycheck has been withheld for Social Security benefits, something you will be able to collect once you retire. Depending on when you decide to leave the workforce, either earlier or when you reach your full retirement age, you will receive a certain amount on a monthly basis. Or so is the plan.
Unfortunately, according to several government studies and reports, Social Security reserves may run dry by 2035. A longer life expectancy, a higher number of retirees and a smaller working-age population are among the factors that financial experts mention as a potential cause
Related: 26 States That Do Not Tax Your Social Security Benefits.
