Despite the sluggish recovery, Americans are starting to feel a little better about their prospects. But that may not be good news for retirement savings. While the recession shocked us into boosting our near-zero savings levels, we’re already being less frugal.
After climbing to 7.2 percent in the second quarter of 2009, the U.S. savings rate dipped to 5.1 percent in the first quarter of this year, the lowest level since the financial meltdown, according to the Bureau of Economic Analysis. Meanwhile, the average 401(k) balance hit $74,900, according to Fidelity Investments. That’s only enough to cover about three years of retirement expenses.
Are you ready for retirement? Investment advisers like to trot out handy rules for savings plan. But some of this conventional wisdom makes it easy to slide off the thrifty path. Here are seven myths about retirement that can trip you up.
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