What is the biggest challenge to retirement planning? You might be thinking it’s a lack of funds, a high tax rate, inflation, problems within the Social Security system, or the fact that you will likely live 20 or more years once you stop working. Yes, these are all valid concerns. But the number one challenge to successful retirement planning might surprise you in it’s simplicity. And it’s right under your nose.
Yes, you read that right. Despite good intentions, many Americans are falling behind on their savings goals due to procrastination. According to a survey by Bank of America and Merrill Edge, 59 percent of Americans set a retirement savings goal in 2015. But less than a third of those people actually reached their goal!
So what is causing all of this procrastination? In two words, poor decisions. According to the report, “External economic pressures and debt they deem worthwhile, such as home or car debt, may be to blame for derailing financial goals, and that people with the most time to save seem to be the most impacted”.
Yes, occasionally a financial emergency is going to derail even the most solid savings plan. But what this report appears to have uncovered is that those of us who are actually able to save still aren’t doing so! And that seems to boil down to a single problem: People don’t take saving for retirement seriously, and choose to spend money, or take on debts, rather than put themselves on a budget and plan for the future.
Remember, it’s best to start saving for retirement early, and to contribute the maximum allowable amount to your retirement fund each year. But even if you’re getting a late start, there are ways to maximize your savings. Call our office to schedule a consultation, and we can help you get back on the right track toward a stable financial future.
15056 – 2015/11/16