Today’s retirement doesn’t necessarily mean a gold watch and a rocking chair. Because Americans are living longer, healthier lives, many have the opportunity to turn this transition into a fresh start in life. On a scale of life stresses, retirement ranks surprisingly high. Many people’s concept of retirement is still based on assumptions that are no longer true. Consider these myths.

First myth: Retirement is when you stop working.

More and more, retirement living includes work — sometimes from necessity but increasingly to stay energetic, involved and healthy. Retirement can be a time to change careers or start a business. Many retirees are using their vast talents, ideas and experiences in volunteer active service.

Second myth: You won’t be retired very long.

Retirement could last as much as a third of your life. Healthier lifestyles and medical advances are pushing life expectancies into the 80s, but you won’t be the same person during all of these 20, 30, or even 40 years. You might want to plan to generate most of your income from work while in the vigorous years of early retirement, allowing your savings to keep growing until it’s needed later on.

Third myth: Cost of living will be lower.

Actually, expenses soon after retirement could be as high as ever. If you continue to work, even part time, you may still face the cost of transportation and a wardrobe. You’ll probably want to spend money on your interest and hobbies. And even though the mortgage may be paid off, you could find yourselves caring for elderly parents or supporting a “boomerang” child who has returned home. Maybe you’ve never had a spending plan while you were working full time. It’s smart to develop one now.

Fourth myth: Taxes will be lower.

It may come as a nasty surprise to discover that you are still in the same tax bracket as before. You may not be pulling down as big a paycheck but you’ll still owe tax on withdrawals from your traditional IRAs or 401(k)s. If you are working, you’ll still pay payroll taxes. And if you decide to start drawing your Social Security benefit, you may owe tax on that. Retirees who keep working between ages 62 and 65 may also have to give back some of their Social Security check — another tax in disguise.

Fifth myth: Health care bills will be taken care of by Medicare.

If you exit an employer health care plan before age 65, you may be on your own. Even when reaching 65, Medicare will not cover every medical expense. Nursing home care is partly covered for 100 days, and then it ends. If you weren’t hospitalized, it’s not covered at all. Long-term nursing care must also be considered.

Sixth myth: Avoid financial risk at all costs.

The two cardinal rules for retirees used to be “never spend your principal” and “equities are too risky.” However, one tended to cancel out the other. By avoiding “risky” equities, you ended up having to tap your principal in order to keep up with inflation.

Seventh myth: Retirees can handle retirement planning themselves.

I generally discourage a do-it-yourself approach to retirement planning because this is a subject that will affect every aspect of your life. What does your retirement look like? The better prepared you are, the easier this transition can be.

Call or write Tom at 1030 Seminary St. Ste. D, Napa, CA 94559, 254-0155, fax 254-0158 or e-mail suntrm@aol.com.