Six common retirement misconceptions are misleading Americans on Social Security, long-term care, investing and taxes, according to a USA TODAY report drawing on Boston College retirement research.
2032 is the key Social Security date: if Congress does nothing, the program would still pay about 83% of benefits rather than zero, and experts say major cuts are unlikely for current or near-retirees.
More than 80% of Americans will need long-term care at some point, yet many underestimate the risk and 58% wrongly believe Medicare covers extended care; Assisted living averages $6,200 a month.
The report also challenges the idea that retirees need $1 million-plus saved or should abandon stocks, noting many retire comfortably on Social Security alone and a 65-year-old woman is likely to live 22 more years.
Taxes remain another blind spot because withdrawals from traditional 401(k)s and IRAs are taxed as income, leaving some retirees in higher brackets than they expected.