3 Retirement Assumptions That Could Hurt You Big Time

Core Insights - Retirement is often romanticized, but it can present significant financial and logistical challenges [1] Group 1: Financial Assumptions - Many people assume that expenses will decrease in retirement, but this is not always the case; some expenses may remain the same or even increase [3][4] - Leisure activities and travel may lead to higher spending due to increased free time and longer trips [4] - It is crucial to create a realistic retirement budget and invest savings efficiently to maintain the desired lifestyle [4][5] Group 2: Healthcare Coverage - There is a common misconception that Medicare will cover all healthcare costs, but this is not true; out-of-pocket expenses can still be significant [6][8] - Medicare enrollees must pay monthly premiums and may incur additional costs such as deductibles and copays [8]