When it comes to saving for retirement, it’s important to remember that standard retirement savings advice is not one-size-fits-all. Be aware of the following common misconceptions so you can meet your savings goals with clarity and confidence.

The 4% Rule is Foolproof

The theory of the 4% rule suggests that a retiree with an expected 30-year retirement should be financially safe from depleting their funds if they withdraw approximately 4% of their retirement capital each year, adjusting the income annually for inflation. While this approach may work for some people, it may not work for others. In fact, researchers are now suggesting that the rate should be as low as 3.3% if you want to ensure your retirement savings last the span of a 30-year retirement.

Social Security Benefits Will Be Enough to Live On

Retirees need to be able to replace about 80% of their preretirement earnings in order to avoid a major decline in quality of life. However, Social Security was designed to replace only about 40% of preretirement income. Without additional savings and investments, you’ll be far from hitting that 80% mark.

It’s Best to Claim Social Security Early

Social Security can be claimed as early as age 62, but waiting until your full retirement age (FRA) guarantees more benefits. Depending on your birth year, your FRA is between ages 66 and 67. To complicate things, the Social Security Act established age 65 as the FRA when it was signed into law in 1935, which also happens to be the age Medicare eligibility kicks in. Because of this, age 65 became the standard age for claiming Social Security, and uninformed Americans are surprised to learn that the FRA has changed. Though there are certain scenarios when claiming early could be the right call, be aware that claiming benefits before your FRA can trigger a permanent reduction in monthly income benefits.

Saving 10%-15% of Income is Enough

If you started saving for retirement in your 20s, saving 10%-15% of your income might be adequate. However, starting later in life requires playing catch up. Longer life spans, lower projected market returns, and the declining value in Social Security benefits all contribute to greater saving needs as well. It is now recommended to increase your savings to about 20% or more.

Medicare Will Cover Healthcare Costs

Americans tend to underestimate how much they’ll need to save for healthcare costs in retirement, even with Medicare and supplements. In fact, healthcare costs have ballooned over the past few years, and if the trend continues, healthcare will become even more costly in the years to come.