Written by Taylor Financial Group, LLC
Recent reports show that more Americans currently expect to live comfortably in retirement compared to a year ago.1 Perhaps, it is due to recent stock market gains or low unemployment. In any event, this optimism is great!
However, there’s another side to this story that should not be overlooked.
Looking at a recent Gallup survey, I was struck by the difference between investors’ positive outlook on retirement and their negative outlook on their current retirement savings.2 In fact, it took me two reads to fully realize what was happening!
When Our Expectations Don’t Match Reality…
This upbeat view of retirement has a clear origin: The stabilizing and growing economy. It’s not every year we break a record for the longest bull market in American history.3 However, what I find intriguing is Americans’ pessimistic views of their own circumstances! According to a recent poll, 57% of Americans now expect that they will live comfortably in retirement compared with last year (51%).4 However, the majority of people also somehow feel they are not saving enough for retirement.5 How can that be?
Let’s take a closer look at this data.
From the chart above, half of the respondents think they should be saving more, while 18% do not have any retirement savings and 5% do but are not adding to it.6 By adding up all those percentages, this tells us that 73% of these adults could be classified as largely unprepared for retirement.7
Now, that’s a problem!
Start Being Proactive
If you are included in one of those percentiles, you should create a plan today. In fact, proactive retirement planning can be the difference between your expected and current lifestyle.8 A proactive approach involves taking action and planning ahead. Many retirees are “reactive,” making decisions based on events as they happen or even things that happened in the past.9
Instead, try to be “proactive” in your retirement. This is about asking: How do you want to be living? Then working to design a plan meant to fulfill those expectations.
With that being said, it is never too early to start your retirement planning now. We can help you gain control of the reigns and steer your future in the right direction. Talk to us!
At Taylor Financial Group, we can design a plan that helps you to actually save for retirement. We can provide advice on income, expenses, budgeting, and planning for both now and the future. We will make sure to incorporate specific money-saving strategies in your retirement plan based upon your financial situation.
We do not want you falling into traps as you enter the second-longest phase of your life. Instead, we want to help you fulfill your retirement goals and wishes!
Have a question about retirement planning in Allendale, NJ?
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Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity.
1 https://news.gallup.com/poll/258320/nonretired-americans-expect-comfortable-retirement.aspx
2 (gallup article above)
4 https://news.gallup.com/poll/258320/nonretired-americans-expect-comfortable-retirement.aspx
5 (gallup article)
6 (gallup article)
7 (gallup article)
8 https://www.investopedia.com/retirement/retirement-income-planning/
9 https://moneymastermindshow.com/proactive-reactive-finances/
