Picture your retirement. What do you see? You and your spouse walking along the beach or strolling in a park…smiling, perhaps sharing a memory? Vacationing in foreign lands without work problems pulling you back to your home base? A rather spacious house, where you’re lounging around the pool while soaking in the sunshine and sipping a beverage? Spending long afternoons with the grandkids in their dedicated guest room in your house?

That’s how it should be.

Unless you never got around to investing in that lavish house with an elegant pool and well-appointed guest rooms. Or forgot to put aside enough money to take that annual vacation to foreign lands.

Yeah, reality has a way of not just catching up but also gate-crashing your party.

In an ideal world, we all would have made the right moves at just the right time. Like I would have invested in the Amazon IPO in May 1997 and bagged shares at $18 apiece and you might have bought Bitcoin in July 2010 when it was being peddled for at $0.0008 per coin.

In that ideal world, our future is bright, our retirement secure.

For those of us who missed the boat, bus, train or whatever it is that was to take us to our la-la land of dream retirement, we need to wake up and smell the coffee.

That said, it isn’t all doom and gloom either. Yes, we’ll still need money to live once we stop earning a living, but our ‘needs’ and ‘wants’ will depend on a lot of factors. To spend quality time with your grandkids, for instance, you don’t really need to entertain them in the guestrooms of your house. You could well pack them a picnic and take them to a public park.

That isn’t to say you don’t need to, or shouldn’t, work towards a comfortable house of your own. But draw a line where you must.

There are plenty of myths about retirement floating around, not least because information on the Internet is quite often incomplete or downright incorrect. Let’s debunk some of the commonly held myths about retirement.

Myth #1: I can delay saving for retirement once I start earning ‘more’

Many people believe it will be easier for them to start saving later in their careers, when they’ll be earning more and, therefore, will be able to comfortably put aside a bigger share on their income. They’re not wrong — it will be easier, but not as effective as starting earlier. You must never underestimate the power of compound interest, which can work wonders for your investments over the long term. It’s always better to start early and stay steady than overspeed later to reach your destination, especially when the road you’re going to take is uncharted.

Savings and investment are uncharted journeys and there will be speedbumps and detours along the road.

Truth #1: Assuming a 10 per cent annual growth rate, starting just seven years later could see you end up with just half the corpus. Do the math.

Myth #2: You’ll need 70% of your pre-retirement expenses after retirement

It is perhaps one of the most prevalent myths that, as a retiree, one will have lower expenses than one did during our working years. That we’d be willing to give up the luxuries of dressing up in good attire or fine-dining or driving a good car. Some of it we actually could do without — I, for one, could ditch a luxury car for a utility one (if I have to, that is). But don’t underestimate the inflation that will push prices up. And the fact that you’d want to travel more often, dine out more often and will have more time for leisure pursuits, all of which will

add to the expenses. And don’t forget that, unlike while you’re employed, you will need to pick up the medical insurance tabs for self, spouse and other dependant members of your family.

Truth #2: You may well end up needing more, not less, than what you did before your retirement.

Myth #3: In Dubai, one needs Dh1 million to retire comfortably

This myth is true for retiring anywhere, and not just Dubai. People usually assume a number, any number — as if it was a guessing game — and put that down as their retirement savings target. From thereon, every step they take, every strategy they put in place, could fall short (or massively overshoot the required number).

The fact is that there can be no one-size-fits-all solution when it comes to retirement. I.e., there is no one right number for everyone. Despite living in the same city — let’s say it’s Dubai — Ali and Muhammad could have differences in their tastes, lifestyles, spending patterns, family sizes and healthcare needs, which will mean that their retirement savings goals will be very different from the other’s.

When figuring out the best retirement plan and withdrawal strategy, you will need to keep in mind everything from your current financial situation, your future income, goals, must-have and nice-to-have lists, et al.

Situations often change. A raging pandemic, a stock market crash, a subprime mortgage crisis, recessions, depressions… things at local, regional and global levels can and do fluctuate.

Truth #3: Take the help of a financial advisor if you need to, but create a retirement plan unique to you. It must adapt and evolve in order to keep pace with the changing circumstances.

Myth #4: My gratuity will be enough for my retirement

Assuming that you wouldn’t want to downgrade your standard of living after you retire (as discussed in myth 2), you’d need to spend at least the same amount per month as you’d be doing just before you retire. Add inflation to it. And an increased healthcare cost. The premium for your medical insurance, likely paid-for by your employer currently, will be yours to foot once you retire. The premium goes up with age, and a lot of exclusions (of pre-existing conditions, etc.) kick in for non-corporate clients.

In that scenario, gratuity or employer sponsored pension plans, like 401(k) or the Employees’ Provident Fund, will not suffice. Chances are, they may not be enough to cover even your basic expenses leave alone matching your living standards.

Truth #4: You’ll definitely need more than just your employer-sponsored funds to enjoy a carefree retirement. Start early.

Myth #5: Medical insurance will cover all my healthcare needs in retirement

Medical insurance is an absolute necessity and you must opt for one that offers comprehensive coverage. That said, the ones that offer all the coverage that you’re ging to need, including dental care, hearing aids, long-term care, prescription drugs, etc., are bound to be expensive. Even then, it may not include certain critical illnesses, for which you may need to purchase separate covers. The premium will rise with every additional illness and you will still have to foot a portion of the cost as out-of-pocket expenses.

When it comes to medical insurance, the best time to start is when you’re young and illness-free. Even if your employer provides a cover, invest in one while you’re young. If you start young, the premium won’t be too high and you’ll be able to enrol in an adequately comprehensive health insurance product. Pick the policy wisely with an eye on your future needs. Go for a comprehensive policy with limited exclusions. And choose a plan that can be renewed even when you’re in your 90s or, God-willing, beyond. Continue renewing the plan annually to build a history with the insurer and qualify for any loyalty bonuses.

Truth #5: A good medical insurance is a must, but it may be expensive if you start the plan after retirement. The best option will be to get one while you’re young(er) and keep renewing it by regularly paying the premium.