For many people, retiring early sounds like an absolute dream. Honestly, it does sound great. But there are some things that you might want to consider before you go all-in on this dream. You want to be fully prepared financially. So, think twice before you believe these 10 early retirement lies.

Don’t Fall Victim To These Early Retirement Lies

1. “I’ll Spend Less When I Retire”

A lot of people assume that they’ll spend less when they retire, and I’m not really sure why they assume that. Your expenses don’t magically shrink just because you stopped punching the clock. The only things you might spend less on are commuting to work and work attire. However, those expenses will be replaced by increased healthcare needs, leisure travel, or hobbies. You might even spend more than you did before, especially during the first 10 years of your retirement, because you have so much free time suddenly.

2. “I Only Need 70% of My Income”

The 70% rule has been thrown around for decades, but it doesn’t work for everyone. This rule assumes your mortgage is paid off and your kids are financially independent, which isn’t always the case. Many retirees still carry debts, help adult children, or deal with rising costs of living. Clinging to this outdated benchmark can leave you underfunded during your golden years. Instead, calculate your unique expenses to create a personalized retirement target.

3. “I’ll Just Work Part-Time if I Run Out of Money”

It might sound like a reasonable backup plan, but part-time work isn’t always guaranteed. Health issues, job market conditions, or age discrimination can limit your ability to earn later in life. Relying on this fallback can lead to a financial cliff when your savings run low. This is one of those early retirement lies that pretends to offer safety but actually adds risk. Plan as if part-time work won’t be available, and anything extra becomes a bonus.

4. “The Stock Market Will Keep Going Up”

Anyone who invests knows that you cannot predict what the stock market is going to do. Counting on the stock market to continue climbing will likely burn you in the end. Downturns and corrections are inevitable, and when you depend on your investments, it can really hit hard. If it’s bad enough, you might be forced to sell investments just to cover your expenses. So, you should never believe that the market will always deliver. At the end of the day, diversification and conservative withdrawals can help you cushion the slumps in the market.

5. “Healthcare Won’t Be That Expensive”

If you’re retiring before Medicare eligibility at 65, you could face staggering healthcare costs. Private insurance or COBRA coverage can eat up thousands annually, even for relatively healthy individuals. Many people vastly underestimate this expense or assume they won’t need much care early on. But health issues don’t wait for your budget to catch up.

6. “I Don’t Need to Worry About Inflation”

Inflation slowly erodes your purchasing power, making today’s retirement dreams far more expensive in 20 years. Even a modest inflation rate can double the cost of living over a couple of decades. Ignoring inflation in your calculations is like budgeting with Monopoly money. This is one of those quiet early retirement lies that doesn’t hurt immediately, but can devastate long-term. Build in inflation-adjusted growth to protect your future lifestyle.

7. “I’ll Travel More When I Retire”

This one sounds harmless—until your budget explodes. Travel isn’t cheap, and doing it often adds up faster than people expect. Plus, health, energy, or caregiving obligations can get in the way of all those wanderlust dreams. This doesn’t mean you shouldn’t travel, but don’t let this idea skew your savings or timelines. Plan for what you’ll realistically enjoy and afford, not just what sounds good on paper.

8. “I Can Just Move Somewhere Cheaper”

Relocating to a low-cost area might save money, but it isn’t a guaranteed fix. Uprooting your life can be stressful, and hidden costs like moving, taxes, or higher insurance in some states can offset those savings. Plus, leaving friends, family, and community can have emotional costs. It’s a romanticized solution that often overlooks real consequences. Test the waters before committing to a drastic move.

9. “My House Is My Retirement Plan”

While home equity can play a role in retirement, it shouldn’t be your entire safety net. Selling or downsizing doesn’t always go as planned, especially in a volatile real estate market. Plus, your home is not a liquid asset—you can’t eat drywall during a cash crunch. Relying on this strategy alone is one of the most misleading early retirement lies. Treat it as a part of the plan, not the whole plan.

10. “I’ll Figure It Out Later”

Procrastination is perhaps the most dangerous myth of all. Every year you delay planning is a missed opportunity for growth, compounding, or debt elimination. Thinking you’ll “figure it out” later leads to a rushed, ill-prepared exit—and often regret. You don’t need to plan everything today, but you do need to start.

Build Your Future On Facts, Not Fantasies

It’s key to build your future on facts, not the fantasy that is often sold along with retiring early. Getting out of the workforce early is often romanticized, but it’s important to avoid believing these lies. You want to be prepared for everything retirement will throw at you, so that you can stay retired.

Which of these early retirement lies have you heard, and did any surprise you? Drop a comment and let’s compare notes!

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