While retirement is a time for people to relax and unwind, recent studies show it’s become more stressful for many because of a lack of financial planning. Studies by the Insured Retirement Institute provide alarming new statistics that show that 42 percent of Baby Boomers and 40 percent of those born in Generation X have yet to save up for life after retirement. Cathy Weatherford, the institute’s C-E-O, says saving begins with setting a goal.
“Always when we set goals, we do better towards achieving them. And so, thinking about at what age you would want to retire, how much money you would need, and then mapping out your strategy.”
According to the institute, a lack of strategy could turn into a struggle to pay for basic life expenses and health care.
This is National Retirement Planning Week, sandwiched inside Financial Literacy Month and close to Tax Day on the 17th. The intent is to put a focus on financial needs after the work life. The Insured Retirement Institute says learning how to plan and save and utilizing a financial adviser are key to being prepared. Weatherford says there is still time for people in the late stages of their careers to start the process.
“Today is the day, the best day to get started so that you could prepare for a good, financially sound retirement.”
Weatherford says being financially smart, such as paying off credit cards or downsizing on homes, can reduce expenses that will pay off in the long run.