Five Retirement Myths You Shouldn't Fall For

There's certainly no shortage of misinformation out there when it comes to your retirement. In some cases, this misinformation could be costing you a lot of money, which is why we want you to know the truth.

Here are five retirement myths you've probably heard and our straight talk response to each:

Myth #1: In retirement, you need to avoid losses and preserve your principal at all costs.

Fact: While we do think older investors should be more cautious than 30-year-old investors, we never want you to entirely forgo growth as a guideline. Your exact investment strategy depends on your particular circumstances, but we recommend you keep 60% - 80% of your money in fixed investments and invest the balance in conservative growth investments that pay good dividends.

Dolan warning : If you need all of your money to live on, then don't put it into anything but fixed investments! You should only put money you can afford to lose even in conservative growth investments.

Myth #2: Social Security benefits are enough to make up the shortfall between your pension and your living expenses.

Fact: This is one of those maybe/maybe not myths. The average annual Social Security benefit is more than $20,000 for couples (depending on lifetime income) and approximately $12,000 a year for single recipients. If you add your pension benefits to that, it may or may not be enough to pay your living expenses. Odds are it won't be enough and you'll need to rely on your own investments to make up the shortfall.

To help figure out exactly where you stand, determine how much your Social Security benefits are likely to be. Visit the Social Security Administration online to request a Social Security Statement, which shows your earnings history and estimates the benefits you can expect. You can also call the Social Security Administration's toll-free number at 800-772-1213.