Retirement Retired Life

8 Biggest Lies Early Retirees Need to Stop Telling Themselves

Telling yourself these fibs can prove costly, especially over a long retirement.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated June 4, 2026

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Workers who plan to stop working in their late 50s or early 60s face some unique challenges. Retirement may stretch on for a long time for these retirees, and it is important to understand the potential pitfalls that often arise.

If you hope to retire early, make sure you are not telling yourself any of the following lies about your golden years.

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My expenses will drop significantly

Many early retirees can't wait to enjoy life now that they no longer have a job. But the cost of exotic vacations, expensive hobbies, and gifts for grandchildren can add up fast.

Early retirees often see their spending surge in the two years before and three years after they retire, according to a study by J.P. Morgan Asset Management. For this reason, some financial planners refer to the period of early retirement as the "go-go years."

The good news is that research does show that many retirees spend less as they get deeper into retirement. But if you are not careful, those early years can wreck your finances, perhaps permanently.

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I can always go back to work if I need to

Age discrimination may be illegal, but it still happens. Once you dip out of the workforce, potential employers have the perfect excuse to avoid hiring you in the future.

It is not impossible to land a good job when you are older, but it can be difficult to do so. A study by the Urban Institute found that just 1 in 10 older workers who were laid off regained their former pay at any point in the future.

Of course, early retirees leave their jobs voluntarily. However, that doesn't change the reality that they likely will face a similar brick wall if they try to return to work.

Medicare will cover my health care costs

Medicare covers many retiree health care costs. But older Americans often mistakenly believe the nation's retirement health insurance policy picks up the tab for everything. In truth, it does not.

Costs that are your responsibility include: long-term care, eye and dental exams, hearing aids, and cosmetic surgery, among others. In addition, Medicare enrollees can expect to pay monthly premiums for their coverage, as well as co-pay and co-insurance costs.

Fidelity Investments forecasts that someone who retired at 65 in 2025 should anticipate spending an average of $172,500 in health care and medical expenses during their golden years.

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My taxes will be simple and low

With any luck, life should get a bit simpler during retirement. But don't expect your tax situation to become less complicated.

After decades of saving for retirement in tax-advantaged accounts, your golden years are the period where you finally pay those taxes to Uncle Sam. Retirees with traditional 401(k) or IRA accounts generally must take required minimum distributions at age 73.

Also, if your income is high enough, you might have to pay taxes on Social Security payments. So, keep your tax professional's phone number handy.

I have enough money because I hit my number

During our working years, many of us come up with a dollar amount and vow that once our nest egg reaches that number, often $500,000 or $1 million (maybe more), we can retire safely.

Perhaps that is true. But many factors determine your own individual risk of running out of money before you die. If you love to spend and enjoy life, your risk of depleting your savings is higher. If you retire and then the stock market takes a nosedive, the nest egg you depend on can develop some major cracks that won't be easy to repair.

So, before you retire, consider sitting down with a financial planner and clarifying how much you really need to retire in light of your lifestyle and other factors.

My health will be good throughout retirement

Those who are younger may believe that eating right, exercising, and reducing stress are the ticket to good health for the rest of their lives.

However, the reality can be quite different. Three-quarters of adults who are between the ages of 35 and 64 have at least one chronic health condition, according to the Centers for Disease Control and Prevention. By the age of 65, almost everyone — more than 90% — has at least one such health woe.

Chronic conditions can be costly to treat. So, consider this another wake-up call to get your finances in order before retiring early.

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If I need long-term care, the government will pick up the tab

Technically, this one could be true. If your income is low and assets all but disappear, the government likely will cover much of your long-term care costs if you also qualify for Medicaid. But few of us would willingly choose to become poor just so we can get a helping hand with our long-term care costs.

Instead, most seniors will need to cover this expense out of pocket. So, don't retire early until you know how you will fund such care should you eventually require it.

If I'm optimistic, good things will happen

Retirement can be a wonderful time of life. Millions of people enjoy their golden years. But as this list shows, bad things can happen to good people, often through no fault of their own.

There is no need to be pessimistic, but simply being optimistic is not enough to guarantee good outcomes. As you get ready for early retirement, hope for the best, but make sure you also prepare for the worst.

Bottom line

Lifespans are increasing, and that means some early retirees will experience post-work lives that stretch on for 30 years or more.

Telling yourself any of the lies on this list can be extremely costly. As you craft a retirement plan, make sure it is grounded in reality. The proper preparation can reduce your level of risk and help you to enjoy your golden years more fully.

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