Some of the most common retirement planning mistakes come from rules of thumb that used to be reasonable shorthand but don’t hold up as well today. Here’s how the common myths compare with the facts.

Myth: “My expenses will drop significantly the moment I retire.”

Fact: Some costs do go down, like commuting and work clothes, but others often rise, especially health care and travel or leisure spending in the early, active years of retirement. Many retirees find their total spending stays roughly level, or dips only modestly, right after they stop working.

Myth: “I can withdraw a fixed 4% a year and never run out of money.”

Fact: The “4% rule” was based on historical market data over a roughly 30-year retirement, under specific assumptions that don’t fit every situation, especially for people retiring earlier or into a period of poor early investment returns. It’s a reasonable starting point for a conversation, not a guarantee for any individual plan.

Myth: “I roughly know how long I’ll live, so I can plan around that number.”

Fact: Life expectancy is an average across a large population, not a personal guarantee. Actual outcomes vary widely, and a meaningful share of people live well past average projections. Retirement income plans generally need to account for the real possibility of a much longer-than-average retirement, sometimes 30 years or more.

Myth: “Market investments alone can give me predictable retirement income.”

Fact: Investment portfolios can fluctuate significantly, and a downturn in the years right around retirement can have an outsized, lasting effect on how long savings actually hold up. Guaranteed income sources, like Social Security, a pension, or an annuity, can help cover essential expenses regardless of what markets do in any given year.

Myth: “Once I retire, my financial plan is basically finished.”

Fact: Retirement income planning tends to be an ongoing process. Tax law, health, market performance, and spending needs can all shift meaningfully over a retirement that may last two or three decades, so periodic check-ins matter just as much after retirement as they did before it.

This article is educational and general in nature. It isn’t personalized financial advice. All guarantees are subject to the claims-paying ability of the issuing insurance company.