In this episode of ThimbleberryU, we dive into part two of our series on debunking retirement myths with Amy Walls from Thimbleberry Financial. We explore five common misconceptions that can hinder financial planning for retirement, starting with the belief that Social Security alone can sustain retirees. Amy explains that Social Security is designed to cover only about 40% of pre-retirement income, meaning additional savings are crucial to maintain one's lifestyle. We also touch on the underestimated impact of healthcare costs, taxes, and inflation, all of which can stretch finances even further.

Next, we tackle the myth that retirees will naturally spend less. While some costs like commuting might decrease, other expenses like travel, hobbies, and particularly healthcare, often increase. The Bureau of Labor Statistics reports that households led by those 65 or older still spend an average of $48,000 annually, suggesting that retirement spending is not always significantly lower than during working years.

We then discuss the misconception that retirees should avoid stocks to protect their savings. Amy challenges this idea, pointing out that retirement often spans 20-30 years. Having stocks in a diversified portfolio can be essential to outpace inflation and maintain purchasing power. Reducing stock exposure too drastically can actually increase the risk of losing value over time.

Another myth we address is the notion that retirees can always return to work if they run out of money. While it might seem like a safety net, factors like age, health, and the ability to find suitable work can make this option less reliable than people believe.

Finally, we debunk the myth that it's too late to start saving for retirement. Amy emphasizes that even late contributions can grow significantly through compound interest and make a meaningful difference in retirement planning. Jag adds that retirement is a long period of time, not just a line in the sand.

In closing, Amy reminds listeners that small, consistent efforts toward saving and planning can improve their financial future, regardless of their starting point. As always, the advice here serves as a guide, but consulting with a financial professional is key to personalized retirement planning.

To get in touch with Amy and her team at Thimbleberry Financial, call 503-610-6510 or visit thimbleberryfinancial.com.