Why Do So Many People Fail in Retirement?
I find that this is one of the most common conversations I have with potential clients.
Unfortunately, one in three families will not have enough money to maintain their lifestyle throughout retirement.
Through these conversations, I’ve been able to narrow down three major pitfalls that many savers make before retirement.
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They have no plan.
Life gets busy. It’s so easy to put off planning for retirement. Tomorrow is a convenient excuse.
There’s a shocking statistic from AARP: only 23% of Americans have some sort of retirement plan.
Many people spend upwards of 30+ years in retirement. Having a strategic plan is the only way to successfully enjoy retirement with confidence.
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They didn’t save enough.
This relates closely to #1. Without a plan, how can you know if you’ve saved enough?
There are so many factors that need to be considered. Things like inflation, health care expenses, taxes, the unexpected (like COVID-19), and much more.
If you’re not sure how much you need to enjoy a successful retirement, I strongly encourage you to seek out expert advice and start planning today. Retirement will come faster than you think.
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They mismanaged their investments.
I see this every single day. And it boils down to three things:
People often invest their savings poorly. Whether it’s holding too much of one position or investing in unreliable holdings, I see people putting their retirement nest egg at risk and even losing a large portion of their assets.
Secondly, budgeting. I’ve known families that make several hundred thousand dollars in annual income, but have nothing in savings and too much in debt. It’s so important to follow a measurable and achievable budget.
Lastly, I think some people are too quick to gift their money to the next generation. Not only might you need those resources for your living expenses, but think about the lost potential returns and future income you might be giving away prematurely.
So, what does your future look like? Do you know?
It is time to invest in yourself and reap the rewards of your labor.
Keep more of your income and pay less in taxes.