Retirement looks different for everyone. For some, it’s the freedom to travel and spend time with family. For others, it might mean starting a new venture, pursuing a long-postponed passion, or simply enjoying a peaceful, stress-free lifestyle.

But no matter your dream, one truth remains: achieving a financially secure retirement requires preparation.

Here are some surprising—and sometimes overlooked—facts about retirement that every working individual should know, followed by common myths that often mislead savers.

12 Surprising Facts About Retirement

1. Retiring Early Can Significantly Reduce Your Benefits

Claiming retirement benefits at age 62—the earliest possible age—can permanently reduce your monthly payout by up to 20%. Full retirement age is rising gradually from 65 to 67, depending on your birth year. The longer you wait, the larger your monthly benefit will be.

2. Most People Underestimate Their Retirement Duration

Thanks to improved healthcare and longer life expectancy, many retirees live 20–30 years post-retirement. That means your savings need to last at least two decades, if not more.

3. Healthcare Costs in Retirement Are Substantial

Healthcare is often the biggest post-retirement expense. It’s estimated that an average retired couple in India may need ₹30–40 lakhs over 20–25 years just for medical costs, especially as insurance premiums increase with age.

4. You Will Likely Pay Taxes Even After Retiring

Retirement doesn’t mean a tax-free life. Income from pensions, interest on savings, annuities, or withdrawals from taxable accounts are often taxable. Proper planning is needed to minimize post-retirement tax burdens.

5. Many Have No Retirement Savings at All

A large portion of the population, especially self-employed individuals and gig workers, have either little or no formal retirement corpus. Lack of awareness and financial discipline are major causes.

6. Relying Solely on Social Security Is Risky

In India, pension schemes like EPS or NPS are limited in coverage. They offer only partial support and are often not sufficient to sustain one’s desired lifestyle.

7. Your Expenses May Not Drop Dramatically Post-Retirement

It’s a common misconception that expenses fall significantly after retirement. In reality, costs may remain the same—or even increase—due to healthcare, travel, or supporting family.

8. Baby Boomers Need to Save More Post-Crisis

According to Employee Benefit Research Institute data, those born between 1948 and 1954 had to save 4.3% more of annual income after the 2008 financial crisis to stay on track for retirement. Economic events can greatly affect long-term plans.

9. Older Adults Spend More Time on Passive Activities

Data shows that individuals aged 75+ spend about 5 hours a day watching TV, often due to health limitations or lifestyle shifts. Planning for active, meaningful use of retirement time is essential to mental well-being.

10. Most People Are Unsure About Retirement Comfort

Surveys reveal that over 60% of working professionals are not confident they’ll have enough to retire comfortably. This uncertainty highlights the need for early planning.

11. Working a Little Longer Can Boost Your Corpus

Delaying retirement by even 3–5 years can drastically improve your savings. It allows more years of contribution and fewer years of withdrawal, increasing the longevity of your investments.

12. You Can Still Improve Your Financial Security

Even if you’ve started late, it’s not too late. Strategic moves like increasing your savings rate, investing smartly, managing debt, and leveraging tax-efficient tools can make a significant impact.

4 Retirement Myths You Should Stop Believing

Myth 1: My Expenses Will Drop After I Retire

Not necessarily. Many retirees end up spending the same or more—especially on health, travel, and supporting dependents.

Myth 2: I Don’t Earn Enough to Save for Retirement

Even small monthly contributions, when started early and invested wisely, can grow into a substantial nest egg. It’s not about how much you earn—it’s about consistency.

Myth 3: I Can Rely Fully on Government or Employer Pensions

These typically cover only a fraction of your post-retirement needs. A personal retirement fund is necessary for full financial independence.

Myth 4: I Need Crores to Retire Comfortably

You don’t need a massive sum overnight. What you need is a clear goal, a good plan, and regular investing. Use goal-based calculators to find your target and work backwards.

What You Should Do Starting Today

Retirement may feel far away, but time is your most powerful tool. Start acting on these three basic pillars:

1. Save: Automate your savings. Increase contributions as your income grows. Use SIPs to build long-term wealth.

2. Insure: Protect your health and life with suitable insurance policies. Don’t let medical emergencies wipe out your savings.

3. Invest: Diversify across equity, debt, and retirement schemes like NPS or PPF. Match your investment choices to your retirement timeline.