Top 10 Myths About
By Jan Cullinane, co-author of best selling The New Retirement
“The times they are a-changin’.” I’m pretty sure Bob Dylan wasn’t talking about retirement when he sang
these famous words, but he sure could have been. Retirement
planning, including all of the non-financial aspects, needs to
be done quite differently today.
Let’s take a look at the Top Ten Myths about retirement:
1. Choice is good. True up to a point, but too
many choices are overwhelming. When there are almost limitless possibilities, such as choosing a place to relocate, people
often go with the default, which is doing nothing—a case of
“analysis paralysis.” Research shows that several high-quality
choices not only make it easier to make a decision, but people
are happier with the result. As an example, why are cruises so
popular? Once you decide on an itinerary, your choices are
narrowed but still very attractive—lodging, meals, entertainment, transportation and activities are at a manageable level.
Cruisers can relax and enjoy the trip—the major decisions
have already been made by the cruise experts.
2. Moving is too difficult.
A 2010 Del Webb
baby boomer survey found that more than one third of
respondents plan to relocate, and half of them think they will
move to another state. With 78 million boomers, that’s a lot
of moving vans rumbling down the roads. Why do people
choose to relocate? The top four reasons are: cost of living,
access to preferred health care, cultural and recreational
amenities and climate. Neighborhoods change, friends and
adult children move away, suburban homes don’t have an
environment that promotes healthy living (such as walking
trails and sidewalks) and, as one woman stated who moved
to a warm climate, “you don’t have to shovel heat.”
3. People are afraid of retirement. Not
true at all. There is a lot of optimism about retirement and all
it has to offer. A 2010 Ameriprise Financial/Harris Interactive
Survey found that 74 percent of pre-retired women and 65 percent of pre-retired men felt “enthusiastic” about retirement.
4. It’s mostly about the money.
A recent study by Daniel Kahneman, a Nobel-winning
behavioral economist, found that an income of above $75,000
a year, peoples’ feelings of day-to-day emotional well-being
leveled off. The old adage about money not buying happiness is true… after you’ve reached an income of $75,000,
that is. When Ameriprise asked people what was important
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