Myth 2: Medicare will cover healthcare costs in retirement

Don’t bet on it. In fact, according to HealthView Insights, a 65-year-old retiree’s estimated lifetime healthcare expenses would be $321,994, as of 2018, with Medicare coverage and dental insurance. More than that, those costs are expected to increase to $404,523 when adding deductibles, hearing, vision, copays and dental cost-sharing.

If you aren’t focused enough on building your nest egg while you can, you may not have sufficient funds to pay for basic healthcare services, Medicare coverage or not.

Myth 3: I can’t save money if I leave the workforce completely

If you are under the impression that a part-time job or another source of income is the only way to build your nest egg, prepare for a mind-blowing revelation. Instead of worrying about clocking in more hours in retirement, buy a Multi-Year Guaranteed Annuity (MYGA)and revel in the wonders of compound interest.

Jonathan Clements, author of the “Jonathan Clements Money Guide 2015,” suggests “making a series of smaller annuity purchases over the course of five or 10 years — which you can stop if your health deteriorates. This will also allow you to spread your purchases among multiple insurers, so you won’t be left in a lurch if any insurer gets in financial trouble.”