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Biggest Fears of Retirement – “Fear of Failure to Finance”

Needles. Heights. Spiders. The dark. All these are things many people are afraid of. However, if you are nearing the age of retirement, what may scare you might not be any of those things. A top concern many individuals approaching retirement have is outliving their savings. Let’s take a look at why this worries many, and a couple of tips to help with this issue.

Affording to Live Through Retirement

Retirement is supposed to be a peaceful time to finally relax and begin living life your way. For many, though, it’s the exact opposite. Most adults over 65 years of age who are living alone cannot afford to pay for their basic needs. No matter your age, the fear of not having enough money is real. We spend most of our lives working to save for the future. When it becomes time for us to rely on what we’ve saved, it can be scary. Most people are afraid that they will not have enough money saved to last through the latter years of their life.  One recent U.S. News & World Report, for example, revealed that in the city of New Orleans, 69 percent of the population over the age of 65 have incomes lower than the poverty line. Little wonder why for many, outliving their money would be a primary concern.

What can be done to address this rising issue? Financial planning well in advance is paramount. Wise money management starts with establishing and maintaining a realistic spending pattern based upon your current income.  For instance, … While many have plans to help them transition into retirement, few have a plan for making it through retirement. That concern is heightened by statistics indicating that people are living longer due in no small part perhaps to advancements made in modern medicine and an increased interest in making healthy lifestyle choices. How is one under the circumstance to determine how much in the way of financial resources is enough? …

It’s important to remember that you will no longer have a steady paycheck with overtime opportunities. The expression, “fixed income” will now become part of your post-retirement vocabulary. Maintaining a daily budget of your living expenses will be something that you will inevitably be forced to do in your new-found circumstance. Doing this can relieve you of long-term financial anxiety. 

Retirement can be a stressful time if you are not properly prepared. The sooner you realize your savings are not where they need to be, the more time you have for adjustment. Start early… the more thought you put into planning your retirement the more you will enjoy it.

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