Child Boomers got here of age in an period the place conventional financial savings recommendation was gospel. Save 10% of your revenue, keep away from debt in any respect prices, keep on with the 9–5, and retire on time. That labored…till it didn’t.

The cost of living has soared, pensions are disappearing, and medical bills are draining what’s left of many nest eggs. But many Boomers are nonetheless clinging to outdated “finest practices” that not match financial realities. These myths aren’t simply harmless relics of an easier time—they’re sabotaging retirement plans and protecting Boomers caught in monetary quicksand.

Should you’re over 55 and questioning why your financial savings nonetheless really feel shaky, it is likely to be time to rethink the recommendation you’ve been following for many years. Under are 12 outdated myths that proceed to steer Boomers astray and what to do as an alternative.

1. “Saving a Mounted Proportion of Your Earnings Is Sufficient”

For years, Boomers had been informed to sock away 10% of their revenue and name it a day. However that components doesn’t maintain up anymore. Due to inflation, rising healthcare prices, and the disappearance of employer pensions, 10% might barely scratch the floor.

Should you didn’t begin saving critically in your 30s or earlier, 10% in your 50s received’t catch you up. The truth is that retirement planning have to be versatile and generally extra aggressive.

Monetary consultants now counsel saving 15% to 20% in later years, particularly in the event you’re behind. Even part-time revenue or downsizing will help bridge the hole in the event you can’t attain that share.

2. “Money Is King. Maintain It Below the Mattress”

Boomers who grew up seeing banks fail or lived by unstable inventory markets usually develop a distrust of investing. That leads some to hoard money, considering it’s the most secure guess. However idle money is without doubt one of the riskiest locations on your cash long-term. Inflation erodes its worth yearly, which means your “secure” financial savings are shedding shopping for energy day by day.

A diversified funding technique, even a conservative one, protects in opposition to inflation whereas providing progress. CDs, bonds, and index funds present safety with higher returns.

3. “My Home Is My Retirement Plan”

It’s true that many Boomers have constructed fairness of their properties, however treating your house like a piggy financial institution is a flawed technique. Properties aren’t liquid, and promoting isn’t at all times simple or worthwhile. Actual property markets can crash. Upkeep prices eat into income. And in case your plan is to “downsize,” it’s possible you’ll be shocked by what smaller properties now value in fascinating areas.

Residence fairness must be a part of a plan—not the plan. Reverse mortgages and promoting to entry money might be choices, however they arrive with charges and restrictions. Don’t guess your future in your sq. footage.

4. “Social Safety Will Cowl My Necessities”

Many Boomers consider Social Security might be sufficient to reside on, however most obtain simply over $1,800 monthly, not sufficient to comfortably cowl housing, healthcare, meals, and utilities in most locations. Social Safety was by no means meant to be a full revenue. It’s a complement at finest.

Should you’re approaching retirement, make certain to calculate your full value of dwelling and establish any gaps between your projected advantages and your precise wants. Ready longer to say, lowering debt, or including part-time revenue will help soften the blow. Counting on authorities checks alone is a big gamble you’ll be able to’t afford.

5. “Retirement Occurs at 65—No Matter What”

For Boomers, 65 was the magic quantity for retirement. However that age marker is extra fable than a mandate. With elevated longevity, retiring at 65 usually means you want to fund 25–30 years of dwelling bills.

Delaying retirement, even by a number of years, could make an enormous distinction. It permits extra time for investments to develop, Social Safety advantages to extend, and bills to stabilize. Working part-time or transitioning to a consulting position might be smarter than a tough cease. At present, flexibility is extra useful than inflexible timelines.

6. “Downsizing Will Resolve All My Issues”

Promoting a big residence to maneuver into one thing smaller would possibly scale back month-to-month payments, however downsizing comes with its personal prices. Realtor charges, transferring bills, furnishing a brand new place, and property taxes can eat up your good points. And in the event you transfer to a smaller residence in a warmer market, it’s possible you’ll end up paying extra, not much less.

Earlier than downsizing, run a full cost-benefit evaluation. Does the transfer really decrease your value of dwelling, or is it only a lateral transfer with hidden prices?

7. “I Don’t Have to Make investments. It’s Too Late Anyway”

Some Boomers keep away from investing as a result of they consider it’s too late to learn. However even at 60, your cash might have to final 25 extra years or longer. Investing doesn’t need to imply dangerous inventory picks. Balanced mutual funds, target-date funds, and low-risk bonds are nice choices to develop your financial savings safely.

Time could also be shorter, however compound curiosity nonetheless works. Each greenback you develop now could be one you received’t need to earn later.

8. “Budgeting Is for Younger Folks”

Loads of Boomers affiliate budgeting with early maturity or faculty. However in retirement, your price range turns into your lifeline. With no regular paycheck, each greenback counts extra. Well being emergencies, household assist, or residence repairs can destroy a fixed-income plan with out cautious monitoring.

Use trendy budgeting apps or work with a monetary advisor to map your money movement. It’s not about penny-pinching. It’s about stopping shortfalls.

9. “Debt Is the Satan At Any Age”

Sure, high-interest debt is harmful. However not all debt is unhealthy. A low-interest mortgage or accountable credit score use will help preserve money movement and credit score scores. Some Boomers go to extremes—liquidating investments or delaying wanted purchases simply to keep away from all types of debt. In doing so, they hurt their long-term place.

Sensible debt administration, relatively than complete avoidance, may give you flexibility and management.

10. “Serving to My Children Comes First”

Boomers usually really feel obligated to assist grownup youngsters with tuition, housing, or day by day bills. However sacrificing your personal retirement to assist grown children is usually a monetary catastrophe.

There are not any loans for retirement, however there are for school. It might really feel egocentric to say no, but it surely’s obligatory in the event you don’t need to change into a burden your self later. Help your children in non-financial methods. Educate them to price range, supply youngster care, or assist with job searches.

11. “Healthcare Prices Will Be Lined by Medicare”

Medicare helps, but it surely doesn’t cowl the whole lot. Most plans don’t embrace dental, imaginative and prescient, listening to, or long-term care. Out-of-pocket prices for retirees usually run $4,000–$6,000 per yr, per particular person, even with good protection. A well being emergency or medicine change can enhance that quickly.

Think about supplemental insurance coverage or an HSA in the event you’re nonetheless working. Budgeting for healthcare is a should—not an possibility.

12. “If I Haven’t Figured It Out By Now, It’s Too Late”

That is essentially the most harmful fable of all. Believing you’re “too outdated” to vary or sort things can result in inertia and a downward monetary spiral.

It’s by no means too late to price range smarter, downsize strategically, make investments rigorously, or construct a facet revenue. The sooner you begin—even now—the extra choices you’ll have later. Your monetary story isn’t completed. And even in the event you really feel behind, the correct strikes now can nonetheless create significant change.

Break the Myths, Construct the Future

Child Boomers don’t have to remain caught in outdated recommendation. The world has modified, and your cash mindset must sustain. By debunking these 12 myths and changing them with proactive methods, you’ll be able to construct a extra resilient monetary future, even in the event you really feel late to the sport.

Which of those myths have you ever believed, and what step will you are taking this week to rewrite your monetary playbook?

Learn Extra:

11 Investments Every Cautious Boomer Should Question Before Retiring

8 Ways Boomers Can Continuously Save Money On Their Taxes

Riley is an Arizona native with over 9 years of writing expertise. From private finance to journey to digital advertising to popular culture, she’s written about the whole lot underneath the solar. When she’s not writing, she’s spending her time exterior, studying, or cuddling along with her two corgis.