Three Misconceptions About Retirement: A Realistic Outlook

Retirement often conjures images of carefree days spent lounging on sandy beaches or leisurely cruising on boats, but the reality is far more nuanced. In this piece, and the accompanying YouTube video on her Channel, Liz Hand, CFP®, dives into three common misconceptions surrounding retirement, offering a more realistic perspective on this significant life transition.

Misconception 1: Retirement is Endless Mai Tais on the Beach

The first misconception about retirement is the idyllic notion that retirement equates to endless relaxation, like a Jimmy Buffet song. 

If you love traveling, or you’d like to spend part of your year somewhere warmer than the Midwest, that’s certainly something you can build into your retirement life. 

However, while the idea of your toes in the water and rear end in the sand sounds enticing, the truth is many retirees grapple with a sense of disconnection or disillusionment.  Their retirement reality doesn’t match the “retirement life,” often depicted by advisors or media. 

Retirement encompasses a spectrum of experiences and emotions, from exploration and fulfillment to uncertainty and adjustment.

Misconception 2: Retirement Will Be Boring

The second misconception centers on the fear of boredom in retirement. Contrary to what many of our clients think, retirees often find themselves busier than ever, engaging in volunteer work, spending time with grandchildren, or pursuing newfound hobbies. 

The freedom from professional obligations can lead to a surge in activities and commitments, challenging the notion that retirement will leave you sitting on the porch.

However, it’s important to balance boredom and overcommitting, allowing for periods of relaxation and self-care amidst your newfound routines, hobbies, and obligations.

Misconception 3: You’ll Have Everything Figured Out by the Time You Retire

The third misconception is that you’ll have everything figured out by the time you retire. That’s the Arrival Fallacy at play.  You’ve probably encountered it before: 

• “When I become an adult, I’ll have it all figured out.”
• “After graduating from school, I’ll have it all figured out.” 
• “By the time I have kids, I’ll have it all figured out.” 

Throughout life, we tend to anticipate that each new milestone will bring clarity and resolution. This rarely happens.  Similarly, retirement is not a destination where all questions are answered, and all problems vanish. 

Instead, retirement is a continual journey of self-discovery and adaptation to evolving circumstances. There will be moments of clarity, sure. But life remains unpredictable and complex.  You’ll still have to make intentional decisions.

The Final Word: Dealing with Retirement Misconceptions

Retirement isn’t an event. It’s a transition.  

By getting real about some of the retirement fallacies portrayed online, and in the media, we can set better expectations for what lies on the horizon. With these misconceptions in mind, I’d encourage you to envision what you think your retirement will look like. As is the case with your money, retirement is all about making the most of what you have, not living up to a stereotype of what your retirement “should be.” 

We love helping clients make the shift from career to retired life.  If you have questions about what lies ahead or just want to get a second opinion, we’re here to help you feel better about your money.  Get your conversation on the calendar here. 

About the Author

Liz Hand, CFP®, is a financial advisor and a trained Life Coach who focuses on serving women closing in on retirement or women who are already retired. With a knack for retirement income design and women’s finances, Liz shares complex financial ideas in practical terms. 

Involved in the community in various capacities, she is on the board of Women’s Impact and involved as the youth sponsor at First Mennonite Church in Canton. Liz and her husband, Nate, enjoy raising their sons, Mason & Brennan. A weekend with free time finds them enjoying downtown Canton eats & events, camping, and dreaming of getting to more National Parks (a family goal to visit them all).