Beth Flynn has the top five retirement myths:
- You'll only need 70-80 percent of your pre-retirement income.
Work-related costs go away when you retire, and the kids are hopefully financially independent. But other expenses can take their place, such as health care (particularly if you retire before 65, the age when Medicare kicks in), increased travel and leisure, etc.
- When you retire, you'll be in a lower tax bracket.
Even workers in higher brackets may find that Social Security income, pensions, taxable portfolio income and retirement account distributions combine to keep them in the same or an even higher bracket in retirement.
- You can always just keep working.
Part-time or even full-time work at something you enjoy can be a fulfilling way to generate extra retirement income and social interaction. But, that presumes both you and the job market for seniors remain healthy.
- The stock market will save you.
For long-term planning, it's smart to plan on high single-digit equity returns and about half that for bonds. Also, don't assume the same return every year. Market returns (even real estate) fluctuate from year to year.
- There's always Social Security.
With Social Security, it's especially hard to separate truth from fiction. According to some, the status quo is fine. Others see bankruptcy as imminent. The Social Security Administration projects that the current system is sound through 2040, but beginning in 2041 benefits could be reduced by 26% and could continue to be reduced annually.
VP, Retirement and Client Experience
Charles Schwab & Co., Inc.
Beth Flynn is currently supporting Schwab's retirement initiative and the company's product, service, and advice offerings for affluent and high net worth clients, focused on delivering a multi-channel approach that leverages products, solutions, marketing, and client experiences to meet the needs of investors.
Beth has been with Schwab for more than seven years. Prior to her current role she was responsible for Product Management for the Margin Loan, Trust & Estate Services and the Cash products category.
Before joining Schwab, Beth spent five years in London working for a boutique marketing strategy firm, where her biggest client was Barclay's Bank. She has since come full circle geographically, as she started her career in San Francisco working for Alex. Brown & Sons.
Beth earned her Master's of Business Administration degree in international marketing from Insead in France and has a Bachelor's of Science degree in Engineering from Lehigh University. She currently lives in San Francisco with her husband and two young girls.
