Figuring out the best way to save for retirement can be tricky—everyone’s financial situation is different, which can make it hard to find the right balance between saving for retirement, putting money aside for other goals, and maintaining a comfortable lifestyle.

There is a lot of retirement advice out there, but not all advice is created equal. In fact, most of the advice commonly shared about retirement savings should be altogether ignored. To help you determine which savings plan is right for you, first you have to learn what not to do. Here are five of the most frequently shared—but ultimately ill-advised—retirement advice tips.

 

  1. Monthly expenses go down in retirement.

If you assume your monthly expenses will go down once you retire, you may end up not saving enough. Many people think that they will save on commuting expenses or they will no longer have a mortgage, but the reality is that the majority of retirees replace their old expanses with new ones. While you may no longer drive to work every day, you will likely still drive to volunteer or recreational activities, not to mention incur the increased costs of travel that often occur during retirement.

Also, when homeowners pay off their mortgage, they may funnel that money into new hobbies or making lifelong dreams come true. Though research has shown that about 20 percent of retirees have lower monthly expenses, another 20 percent spend more. The remaining 60 percent tend to have about equivalent monthly expenses.

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  1. People need X amount of money to retire.

Many people will offer an exact figure for how much money you need to save to be able to retire. Unfortunately, these numbers rarely reflect the truth for everyone—though you will need a significant chunk of money to retire, choosing an arbitrary number is not helpful. If you choose an amount that’s too high, you may become discouraged because you feel like you will never hit that amount. Or you may become so focused on saving enough that you forego important opportunities in the present.

In reality, future retirees need to think about how much they will likely spend each month in retirement and use that number to come up with a figure that more accurately reflects their personal goals and lifestyle preferences. Financial advisors and other professionals can help you set more realistic goals.

 

  1. Social Security will run out in the next few years.

Over the years, many people have talked about how Social Security is going broke. While Social Security has been more robust in the past, it is not in imminent danger of going bankrupt. Most often, retirement professionals hear people bring this fact up when they want to draw on Social Security early (even though this involves a penalty). These people tend to want to get in on the money while they can. However, Social Security is funded through a payroll tax, so as long as people are paying their taxes, there will be benefits for retirees. Taking a permanent reduction in monthly income can cause a lot of issues down the line. While you may be tempted to hedge your bets and plan for retirement without factoring in Social Security, the truth is that this money is not running out anytime soon.

 

  1. There is always time to catch up with savings.

If you have not been able to save for some reason, do not despair—there are things you can do over time to help you boost savings. However, thinking that there is always time to catch up and using that as an excuse to delay savings is unwise. When you start saving early, you maximize the benefit of compounding returns and also give yourself some leeway when it comes to investing decisions.

Individuals who start down the road put themselves at a serious disadvantage since their money will never grow at the same rate it could have if they had started earlier. Sometimes, extenuating circumstances get in the way, but you should be diligent about saving as much as possible—now.

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  1. Only one savings tool is necessary.

One of the biggest traps that people fall into is putting all of their savings into a single type of account. There are many different types of savings accounts, and they all have their unique benefits and drawbacks. You can look into other options, like an IRA, to supplement the money you put into your work-related savings accounts, such as a 401(k).

The problem with having one savings tool is that you may start to feel like you have maxed out your savings. For example, when you have gotten as much matched from your employer as possible, you may stop saving. At this point, you need to look at other options and figure out what will benefit you the most once you have achieved the maximum for an employee-sponsored account. Often, it makes sense to have at least one traditional and one Roth account, giving you options for lowering your taxes in retirement.