The biggest retirement myths debunked Part 2

You can find the first series of debunked retirement myths here


If you're like most people, you've probably heard a lot of conflicting information about retirement. With so much noise out there, it's hard to know what's true and what's not. To help clear things up, we're debunking some of the most common retirement myths:

Myth #6: You Shouldn't Use Debt in Retirement

One of the biggest retirement myths is that you shouldn't use debt in retirement. This is simply not true. In fact, debt can be a valuable tool in retirement, if used correctly.

For example, let's say you have a mortgage on your home. If you're retired and have a lower income, you may not be able to afford the monthly payments. However, you can use a reverse mortgage to tap into the equity in your home and get the cash you need.

Similarly, if you have a low-interest credit card, you can use it to finance big purchases, like a new car or a trip. Just be sure to pay off the balance in full each month to avoid paying interest.

Myth #7: You Shouldn't Invest in Risky Assets

Another common myth is that you shouldn't invest in risky assets, like stocks, in retirement. The thinking is that since you don't have a long time to make up for losses, you should stick to safer investments, like bonds.

However, this advice is overly cautious. While it's true that you don't want to take on too much risk in retirement, you also don't want to miss out on potential gains.

A better approach is to create a mix of both risky and safe investments. This way, you can participate in the upside of the stock market while still having the stability of bonds.

Myth #8: You Shouldn't Work in Retirement

Many people believe that you shouldn't work in retirement. After all, isn't retirement supposed to be a time to relax and enjoy your golden years?

While this is a nice sentiment, it's not realistic for everyone. In fact, many people need to work in retirement, either because they want to or because they have to.

If you enjoy your job and don't want to retire, there's no reason why you can't continue working. And if you need to work to make ends meet, there are plenty of part-time and flexible job options available.

The bottom line is that you should do what's best for you. If working in retirement is what you want or need to do, don't let anyone tell you that you shouldn't.

Myth #9: You Shouldn't Travel in Retirement

Another common myth is that you shouldn't travel in retirement. The thinking is that travel is too expensive and it's better to stay at home.

However, travel can actually be quite affordable, especially if you plan ahead. There are many ways to save on travel costs, like using points and miles to book flights and hotels, or renting an RV instead of staying in a hotel.

In addition, travel can actually be good for your health. It can help reduce stress, boost your mood, and improve your overall well-being.

So, if you love to travel, don't let anyone tell you that you shouldn't do it in retirement.

Myth #10: You Shouldn't Buy a Home in Retirement

Another myth is that you shouldn't buy a home in retirement. The thinking is that a mortgage is too much of a burden in retirement.

However, buying a home can actually be a good idea in retirement. It can provide you with a place to live that's cheaper than renting, and it can also give you a source of income if you rent out rooms.

Of course, you'll need to be careful about how much you spend on your home. But if you do it right, buying a home in retirement can be a smart move.

The bottom line is that there are a lot of retirement myths out there. Don't believe everything you hear. Instead, do what's best for you and your situation.

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Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.