"You need at least $2 million to retire," my financial advisor said, sliding a glossy brochure across his mahogany desk. "Anything less and you'll be eating cat food by 75."
I was 32, making $65,000 a year, with $15,000 saved. By his math, I needed to save $60,000 annually for the next 33 years. That's... more than I made after taxes. "So basically," I said, "I should just plan to work until I die?"
He smiled that condescending smile financial advisors perfect in advisor school. "Well, you could always downsize your lifestyle expectations."
That was eight years ago. Today, at 40, I'm on track to retire at 55 with $800,000. Not $2 million. Not eating cat food. How? By ignoring every piece of "conventional wisdom" about retirement and doing actual math instead of believing myths designed to keep you scared, working, and paying advisory fees forever.
Myth #1: You Need $2-5 Million to Retire
Every retirement calculator online says you need millions. Fidelity says $1.7 million. Charles Schwab says $2.1 million. Some "experts" throw around $5 million for a "comfortable" retirement.
Here's what they're not telling you: these numbers assume you'll spend 80-100% of your working income in retirement, live to 95+, never adjust spending for market conditions, need to leave a massive inheritance, and want to maintain your most expensive lifestyle forever.
Reality check: The average retiree spends $47,000 annually. Using the 4% rule, that requires $1.175 million. Still sounds like a lot? Factor in Social Security ($20,000/year average), and you need $675,000. That's one-third of what the "experts" claim.
My parents retired with $400,000. They receive $35,000 from Social Security, withdraw $16,000 annually from savings (4%), and live on $51,000 total. They travel internationally twice a year, own their home, and have better lives than when they were working. No cat food in sight.
The dirty secret? Financial advisors make money on assets under management. Scaring you into oversaving means more fees for them. The retirement industry profits from your paranoia.
Real math: Calculate your actual expenses, not your income. Most retirees spend 60-70% of their working expenses because: no commute costs, no work clothes, no mortgage (ideally), no saving for retirement (you're there!), and often lower taxes.
My retirement number? $800,000. That gives me $32,000/year at 4% withdrawal, plus estimated $25,000 Social Security, totaling $57,000. That's more than I spend now, and I live well. Your number might be different, but it's probably not $2 million.
Myth #2: It's Too Late to Start
"I'm 45 and have nothing saved. What's the point of starting now?"
This defeatist myth keeps people from starting at all, guaranteeing poverty in retirement. Here's the truth: starting at 45 is infinitely better than starting at 46. Or never.
Let me show you the "too late" math:
Start at 45 with zero. Max out 401(k) ($23,000/year). Add catch-up contributions at 50 ($7,500 extra). Invest aggressively (80/20 stocks/bonds). Assume 7% returns. By 67, you have $1.1 million.
That's starting from ZERO at 45 and retiring a millionaire.
But what if you can't max out? Even $500/month from 45 to 67 becomes $265,000. Add Social Security and that's a decent retirement. Not luxurious, but decent. Definitely better than nothing.
My coworker started at 48 after a divorce wiped her out. She's now 58 with $310,000 saved. Will she retire rich? No. Will she retire? Yes, comfortably, at 65. Starting late isn't ideal, but it's not fatal.
The real problem isn't starting late – it's believing it's too late and not starting at all. Compound interest needs time, but some time beats no time. Every year you wait makes it harder, not impossible.
Here's what late starters do differently: Save aggressively (30-40% if possible). Work until 67-70 (more time to save, delay Social Security for higher benefits). Consider geographic arbitrage (retire somewhere cheaper). Take more investment risk (you need growth). Use catch-up contributions religiously.
Is starting at 25 better? Obviously. But perfect is the enemy of good. Start now with what you have. Future you will thank present you for anything over nothing.
Myth #3: Social Security Won't Exist
"Social Security will be bankrupt by 2034!" scream the headlines. "Millennials will never see a dime!"
This myth causes people to exclude Social Security from planning, requiring massive oversaving. Here's what actually happens in 2034: the trust fund depletes, but payroll taxes still fund 80% of benefits. Not ideal, but not zero.
Historically, every time Social Security faced crisis, Congress acted: 1977: Raised retirement age gradually. 1983: Increased payroll taxes, taxed benefits. Future fixes might include: raising the cap on taxable income, means-testing benefits, slight benefit reductions, or small tax increases.
Will you get exactly what's promised today? Probably not. Will you get something? Almost certainly. Social Security is the third rail of politics – touching it is career suicide. No politician wants to be responsible for grandma eating cat food.
My planning assumes 75% of promised benefits to be conservative. That's still $18,750 instead of $25,000 for the average retiree. Not nothing. Definitely not worth ignoring in your planning.
The real risk isn't Social Security disappearing – it's planning like it doesn't exist and oversaving unnecessarily. If you need $2 million assuming zero Social Security but only $1 million with reduced benefits, that's years of extra work for an unlikely scenario.
Plan for reduced benefits, not zero benefits. The difference matters enormously for your retirement timeline.
Myth #4: You Can't Touch Retirement Accounts Until 59½
"I'd retire at 50, but my 401(k) is locked until 59½!"
This myth keeps people working years longer than necessary. The truth? There are multiple ways to access retirement funds early without penalties:
**Rule of 55**: Leave your job at 55+, withdraw from that employer's 401(k) penalty-free. Works even if you get another job.
**72(t) Distributions**: Take substantially equal periodic payments for 5 years or until 59½, whichever is longer. Complex but legal.
**Roth Conversion Ladder**: Convert traditional IRA to Roth, wait 5 years, withdraw penalty-free. Requires planning but powerful.
**Roth Contributions**: Withdraw your Roth IRA contributions anytime, no penalties, no taxes. Growth must wait, but contributions are accessible.
**457(b) Plans**: Government and non-profit employees can withdraw immediately upon separation, any age, no penalties.
My early retirement strategy: Roth conversion ladder starting at 50, bridge with taxable accounts and Roth contributions until 55, Rule of 55 on my 401(k) as backup. Multiple options, no penalties, retire when ready.
The 59½ rule is real but not absolute. With planning, it's a speed bump, not a wall. Don't let it keep you working extra years unnecessarily.
Myth #5: Retirement Means Never Working Again
"I can't retire because I might want to work part-time and that's not really retirement!"
This all-or-nothing myth keeps people grinding until 67 when they could semi-retire at 55. Modern retirement isn't binary – it's a spectrum.
My neighbor "retired" at 52. He consults 10 hours weekly, makes $30,000/year, covers his entire annual spending. His retirement savings remain untouched, still growing. Is he retired? Who cares – he's free.
Types of semi-retirement: Consulting in your field (high pay, low hours). Passion projects that happen to pay. Seasonal work (tax prep, holiday retail). Teaching/tutoring. Freelance writing. Part-time at a fun job (bookstore, golf course).
The math changes everything: Need $50,000/year? With $20,000 from part-time work, you only need $30,000 from savings. That's $750,000 at 4% withdrawal, not $1.25 million. You just moved retirement up by years.
Plus, working part-time in retirement has benefits: Social interaction, purpose and structure, mental stimulation, extra money for fun, and letting investments grow longer.
My plan? "Retire" at 55, teach part-time at community college. Love teaching, hate meetings. Perfect semi-retirement. Will I be "really" retired? Don't care. I'll be doing what I want, when I want. That's the only definition that matters.
The Retirement Math That Actually Matters
Forget the myths. Here's the math that matters:
**The 4% Rule**: Withdraw 4% of your portfolio annually, adjusted for inflation. Historically sustainable for 30+ years. Need $40,000/year? Need $1 million saved. Simple.
**The Multiply by 25 Rule**: Annual expenses x 25 = retirement number. Spend $50,000/year? Need $1.25 million. Spend $30,000? Need $750,000. Your expenses, not someone else's.
**The Coast FIRE Number**: Save enough early that compound interest carries you to retirement without additional contributions. Hit $100,000 by 30? Coast to $1 million by 65 without saving another penny (at 7% returns).
**The Barista FIRE Number**: Save enough that part-time work covers expenses while investments grow. Need $30,000/year, make $15,000 part-time? Only need $375,000 saved (4% of $375,000 = $15,000).
These aren't complex. They're not scary. They're just math. And math doesn't care about myths.
My Actual Retirement Plan (Steal This)
Current age: 40. Target retirement: 55. Current saved: $320,000. Annual expenses: $45,000. Strategy:
Save $24,000/year for 15 years. At 7% returns, hit $850,000 by 55. Semi-retire, teach part-time for $20,000/year. Withdraw $20,000 from portfolio (2.3% withdrawal rate). Let portfolio grow until 62.
At 62, fully retire with $1.2 million. Take Social Security at 67 for maximum benefit. Withdraw 4% ($48,000) + Social Security ($28,000) = $76,000/year.
More than I spend now, achieved by 55, with backup plans throughout. No $2 million required. No working until 70. No cat food.
The Truth About Retirement
Retirement isn't about hitting a mythical number. It's about having enough to support your actual lifestyle, not someone else's expectations. Most people need far less than the industry claims.
It's never too late to start. Even ten years of saving beats zero years of saving. Compound interest doesn't care about your age, only your action.
Social Security will exist in some form. Plan for reductions, not elimination. The difference dramatically changes your required savings.
Early access to retirement funds is possible with planning. The 59½ rule has multiple legal exceptions. Don't let it trap you in work.
Retirement is flexible. Part-time work, passion projects, and semi-retirement all count. Define it yourself.
Your Move
Stop believing myths that keep you scared and working forever. Do the actual math on your actual expenses. Start saving now, whatever your age. Plan for realistic scenarios, not apocalypses. Consider semi-retirement and geographic arbitrage.
Most importantly, realize that retirement is achievable for normal people with normal incomes. Not easy, but achievable. The biggest barrier isn't money – it's believing myths designed to keep you dependent on an industry that profits from your fear.
I'll retire at 55 with $850,000. Not because I'm special, but because I ignored the myths and did the math. Your turn. Calculate your real number, make a real plan, and start working toward real retirement.
The alternative? Believing the myths, oversaving for scenarios that won't happen, and working until you're too old to enjoy the retirement you finally achieved. That's the real tragedy – not retiring "poor," but never retiring at all because you believed you needed to be rich.
Your retirement is closer than they want you to believe. Do the math and see for yourself.