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Mindful Money

Don’t Fear Retirement!

June 21, 2017

Everyone retires, but not everyone is emotional or financially prepared. According to a 2011 AARP survey, 43 percent of older Americans said they were ready to retire and 41 percent said that they were not. There are many reasons for why older Americans are cautious about retirement, from financial concerns and healthcare costs to family responsibilities.

Listed below are Mindful tips to help ease your stress while planning for retirement.

  • Financial Fears. Many Americans put off retirement because they fear that they will outlive their savings. According to the Employment Benefit Research Institute, 46 percent of Americans have less than $10,000 saved for retirement. Ease the financial strain by planning ahead. Come up with retirement saving goals with a financial advisor. You can also use a retirement calculator to make sure that you’re saving enough now. 
  • Healthcare Scare. Older Americans may put off retirement due to healthcare costs. For one thing, healthcare gets more expensive as one gets older; saving enough money to cover these future costs can take awhile. Prepare for retirement now by taking better care of your health now. Visit your doctor regularly, exercise often, and eat a balanced meal. Also, try to save money to cover future medical costs and review your current medical plan thoroughly. 
  • Family Anxiety. Family responsibilities often lead to unexpected expenses and this is why some Americans put off retirement. Many older Americans are reluctant to retire because they still provide assistance to dependent children and may also be caring financially for their elderly parents. Prepare for retirement by having an honest discussion about money and responsibilities changes with your children. Though it may seem uncomfortable it can help everyone better prepare emotionally and financially. 
  • Housing Problems. Housing concerns are also a problem for Americans reaching retirement age. Many Americans may want to move to their dream location or closer to family, which can be expensive. Finding affordable housing can be a challenge. Talk to your financial adviser if you plan on selling your home in the future and see if they can offer any tips or advice.

Bonus: Spend Your Free Time Right. Some Americans may put off retirement because they are uncertain of how they will adjust to a new pace of life. Making plans now for how you will spend your time in retirement can help. For instance, come up with travel ideas now. This will give you something to look forward to as you reach retirement. 

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