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‘Tis the season to plan for the future. The holidays are a time for making tax-beneficial decision about money; particularly end of year bonuses that could mean the difference between one tax bracket and another. With that said, Roth IRA contributions will be made at a premium.

But planning for retirement shouldn’t be limited to holiday time giving. In fact, it should not end even when retirement comes. It is reasonable to say that there are a few misconceptions about retirement that should make some future retirees re-think how financial planning should occur. This post will highlight some of them.

Retirement is a permanent vacation – To believe that retirement will be a life of care-free living where one does nothing at all is a fantasy. For many retirees, having nothing to do leads to depression and feeling like time has passed them by. Because of this, many retirees have part time jobs, or continue in their profession on a limited basis.

Spending remains the same in retirement – Many retirees may believe that they will live out their days on a fixed income, and that their spending will never change. This also is a common misconception. It is conceivable that spending on medical expenses will increase, despite being eligible for Medicare and Medicaid.

Money is the most important thing to happiness – Indeed, money is important, but the ultimate key to happiness in retirement is good health. Who wants to be retired going constantly between home and hospitals. So if you are worried about not having millions to live on in retirement, don’t be.