It’s not always an easy task planning for retirement. A lot of older workers become somewhat besieged and have a tendency to feel stressed and anxious while they work through the entire elements of their retirement plan.

Retirement anxiety can be traced back to election-year polls. In order to measure the 1993 anxiety index, AARP did a study on five issues – taxes, inflation, retirement opportunity, financial security during retirement and health care affordability – during the 2012 presidential election. In 1994, as expected, according to the AARP poll, the non-retired 50 to 64-year olds scored the highest on the Anxiety Index at 70%. A lower score of 59% was recorded amongst the people aged between 18-49 years while 46% was recorded for older adults aged 65 and above.

It is expected that almost 3 out of 4 non-retired boomers will delay their retirement, and half have very little confidence in their ability to retire someday, as stated by AARP. An annual Retirement Confidence review carried out by the Employee Benefits Research Institute (EBRI), as well as the 2014 survey echoes similar concerns amongst those getting close to the retirement age. Out of all the people still working, a little over 2 out of 5 said they had little or no confidence that they’ll be able to save enough money to live a comfortable life in retirement.

Contributors to retirement anxiety in one way or another include emotional strain, savings and relationship issues. Here are three strategies to possibly keep your retirement anxiety afar.

 

  1. CRAFT A PERSONAL VISION STATEMENT

Do you think your hobbies will be sufficient? A personal vision statement is capable of guiding your values and goals all through your retirement. It’s capable of helping you focus on enhancing familial duties as a partner, grandparent or parent. In the same way, you can develop external relationships by being a mentor or a volunteer. Do something much more than your list of hobbies and strategize on how to engage in activities that’ll add value and give you a sense of purpose in your retirement years.

Having a work-life balance entails having a good mixture of work, relationships and leisure. As you move toward retirement, a balanced portfolio entails regularly adjusting your investments. If you have a very short time before retirement, it means you don’t have as much opportunity to take risks in the stock market. You will need to readjust so as to retreat from riskier assets that make huge returns, and focus more on those that safeguard and keep your capital. Consult with a financial expert to help you rebalance confidently.

  1. FLEX YOUR SAVINGS MUSCLE

In 2007, according to an annual Retirement Confidence Survey carried out by the Employee Benefits Research Institutes, 41% of respondents were very certain they’d have sufficient funds to live a comfortable life all through their retirement years. However, this number fell to 28% by 2014. When you get to the last phase of saving for retirement, it is extremely important that you save as much as possible. People who are 50 years and more are qualified to make catch-up payments to IRA accounts and 401(k). For 2015, you can make a payment of up to $6,500 to your IRA and $24,000 to your 401(k) accounts. Just knowing that you are making use of all the resources at your disposal boosts your confidence.

  1. BROADEN YOUR PLAN

According to the Anxiety Index survey by AARP, 60% of workers are worried about not having enough savings to last all through their retirement. This worry is frequently aggravated by the ever-rising health care costs and the threatening question: What if I need long-term care?

The time to broaden your idea of retirement plan to comprise much more than a mere savings account is NOW. Assess if you’ll need long-term care as well as your eligibility for a long-term care policy. These policies carry out similar functions with disability insurance of your pre-retirement years; they basically safeguard your retirement savings and your source of revenue from a major fiscal burden.

The Employee Benefits Research Institute in 2013 established that 55% of the workforce has issues with their debt level, and no more than half state they might certainly produce $2,000 in the case of an emergency within the next thirty days. If you’re being prevented from saving for retirement as a result of a significant financial debt, come up with a payoff strategy immediately. It’ll help you concentrate on your future with no outstanding pressure looming around.

You understand the importance of following the advice of your doctors, what reason do you have then not to follow the advice of your financial expert? Fewer than 25% of workers, as well as about 25% of retirees, have sought investment advice from a financial expert. Out of these numbers, just about 29% of workers adhered to some of the advice. Financial experts expend 100% of their time assisting their clients in attaining their financial goals. They provide external viewpoints, strategic opportunities and expert knowledge that individual investors are unable to do by themselves. Develop a habit of going for financial check-ups regularly and you will become more empowered as you apply realistic steps towards your retirement goals.

 

SOURCE:

“Boomers’ ‘Anxiety Index’ High, Voter Survey Reveals” AARP.org August 2012.

Employee Benefits Research Institute 2014 Retirement Confidence Survey.

IRS.gov

Employee Benefits Research Institute 2013 Retirement Confidence Survey.

 

Written by 3rd independent Party

2017-41793  Exp. 10/17