MYTH: People need to replace 100 percent of their pre-retirement income in retirement.
REALITY: Most people need between 65 to 85 percent to be secure.
MYTH: People will have enough resources to meet this need when they retire.
REALITY: Almost 45 percent of working-age households are at risk of failing to meet this objective, according to the Center's new National Retirement Risk Index.
MYTH: Younger workers will be better prepared in retirement than Baby Boomers.
REALITY: Younger workers are more vulnerable — nearly half of households are at risk.
MYTH: Social Security will still replace 42 percent of an average worker's earnings.
REALITY: Net Social Security replacement rates will drop to 30 percent by 2030, adjusting for the rising Normal Retirement Age, taxation of benefits, and higher Medicare premiums.
More from TODAY.com
Hillary Clinton: Granddaughter led me 'to speed up' political plans
Clinton said she is inspired to keep working to ensure that Charlotte and her generation are provided equal opportunities ...
- Lauren Hill, inspirational college basketball player, dies
- Marathon dad's victories help raise money for son with spina bifida
- Will it work on Vale? Savannah tries tissue sleeping trick at home
- Listen to the chilling 911 call Sandra Bullock made during break-in
- Hillary Clinton: Granddaughter led me 'to speed up' political plans
MYTH: Although 401(k)s are the most common type of employer-sponsored pension, traditional
defined benefit plans still cover a large share of the workforce.
REALITY: In 2003, only 10 percent of all private sector workers with pensions were covered solely by a defined benefit plan.
MYTH: 401(k)s have allowed workers to save significant amounts for retirement.
REALITY: In 2004, the typical household head approaching retirement had only $60,000 in 401(k) and IRA accounts, which translates into less than $400 per month in retirement.
MYTH: If today's workers save as much relative to their income as their parents, their retirement will be secure.
REALITY: Current workers must save more because of the demise of traditional pensions, rising longevity, soaring health care costs, and falling asset returns.
MYTH: People can rely on the equity in their house to finance their retirement.
REALITY: Retirees need somewhere to live, so they can tap only a portion of their house's value with a reverse mortgage — about 45 percent at current interest rates and less if rates rise from today's low levels.
MYTH: It's too hard to save enough for retirement.
REALITY: If workers consistently set aside 6 percent of their paychecks (with a 3 percent employer match), invest prudently, and leave the money alone, they should have enough.
MYTH: Given the trends in retirement income, people will have to work until they drop.
REALITY: Working to age 67 — and not drawing income from Social Security or 401(k)s — would allow most people to have a secure retirement.
Source: Center for Retirement Research, Boston College