When mapping out your retirement years, it’s critical to have the right information. Financial myths can make it difficult to plan your retirement — and then stay on track with that plan. 

Along with developing a retirement savings and income strategy that’s personalized to you, your Ameriprise financial advisor can help you sort through financial misinformation. 

Here are seven common retirement planning myths and realities: 

Myth #1: I don’t need to save outside of my 401(k) or pension 

Fact: Workplace-sponsored retirement plans, like 401(k) plans and pensions, can be valuable tools in your retirement savings journey, but they may not generate enough income to fund the retirement lifestyle you envision. For example, if you got a later start in your retirement savings journey or want the flexibility to spend more freely in your retirement, you may want to save in other investment vehicles. Beyond 401(k) plans and pensions, investing in Roth IRAs, annuities, real estate and traditional brokerage accounts can help you meet your retirement income needs.  

How an Ameriprise financial advisor can help: They can review your overall retirement portfolio and recommend additional opportunities to save and invest. 

Myth #2: Medicare will cover all my health care costs 

Fact: Medicare is a valuable health insurance program for many retirees, but it wasn’t designed to cover all medical expenses. For example, deductibles and copayments (which can be significant), as well as the cost of care for dental, vision and hearing conditions are not covered. In addition, coverage for nursing homes and other long-term care is limited. 

How an Ameriprise financial advisor can help: They can factor in anticipated health care expenses and recommend solutions, such as health savings accounts, Medigap policies and long-term care insurance, to help you prepare for these costs in retirement. 

Learn more: Medicare basics: What is Medicare and how does it work? 

Myth #3: I can work for as long as I need to 

Fact: Longer life spans may mean more years in retirement and possibly more years working past age 65. However, aging comes with a lot of uncertainties and it may not be realistic to expect to work as long as you need or want to. Further, unexpected events, like job loss or disability, may require you to change your retirement plans. 

How an Ameriprise financial advisor can help: They can help you develop a personalized retirement planning and income strategy, including solutions to help shield your assets against the unexpected — like retiring earlier than planned. 

Learn more: Working after retirement 

Myth #4: I'll live in the same place throughout my retirement 

Fact: You may think that by the time you retire, your mortgage will be paid off and your housing costs will be set. However, moving is often a reality during the retirement years. For example, you may decide to move closer to family members or into an urban area for the culture and convenience. Or you may find you need an assisted living situation or a community with more transportation and maintenance services at hand. 

How an Ameriprise financial advisor can help: They can help you account for the broader financial considerations when moving, as well as help you understand how changing your housing in retirement might affect your financial situation. 

Myth #5: I’ll spend less 

Fact: Depending on your goals, you may spend more money in retirement than you thought you would, especially if you are traveling, visiting family or pursuing new hobbies and activities. Additionally, it’s easy to underestimate the impact of inflation, which can erode your purchasing power over time. Once you add up all your anticipated retirement expenses, you may find that you may need more income to support all the goals and experiences you have planned for your retirement years.  

How an Ameriprise financial advisor can help: They can help you develop a spending plan for retirement. 

Learn more: Estimating my retirement expenses 

Myth #6: I'll pay less in taxes 

Fact: Paying less in taxes assumes you'll have less income, which may not be the case if your dream retirement includes goals like building a new family home, experiencing new cultures abroad or creating a business. Further, this retirement planning myth doesn’t account for the possibility that tax rates may rise in the future and that you may qualify for fewer tax breaks in retirement, like the mortgage interest deduction. 

How an Ameriprise financial advisor can help: They can recommend a tax-efficient, retirement income strategy specific to your situation. 

Myth #7: All my investments need to be conservative when I retire 

Fact: While it’s wise to adjust your investment strategy as you near retirement, this doesn’t mean you have to avoid growth-oriented investments entirely. A portfolio that's too conservative may not generate the returns needed to outpace inflation and support a long retirement. Rather, an approach that includes a mix of conservative and growth investments is often more effective. This strategy helps preserve your principal while still allowing for potential growth to sustain your income needs over the long term. 

How an Ameriprise financial advisor can help: They can help your retirement savings last by helping you create an investment portfolio that balances asset preservation with growth potential.  

Learn more: Downsizing your home in retirement 

We’re here to help with your retirement planning needs 

You deserve to enjoy your retirement with more confidence. As you plan for these years, you can lean on your Ameriprise financial advisor for personalized advice based on your goals and needs.