What's the Biggest Challenge to Your Retirement?

When you think of retirement planning challenges, you might think of people who face high tax rates, a lack of funds, or the infamous problems within the Social Security system. You might even be thinking of the fact that most people are living longer lifespans these days, or that inflation will seriously impact your purchasing power on a fixed income.

Yes, these are all very real concerns. But the number one challenge to your retirement is probably something much more simple: Procrastination!

Despite all of the challenges listed above, and widespread awareness of them, Americans are still falling behind on their savings goals. A recent survey by Bank of American and Merrill Edge discovered that while 59 percent of American workers set a retirement savings goal in 2015, less than a third of those people actually reached their goal!

Clearly, people know what they need to do, but they're procrastinating on actually getting it done. Why? For many people, it boils down to their decision-making process. As the report states, “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”.

Sure, sometimes we're all going to experience a financial emergency that derails our savings plans. But in most cases, according to the report, people who are able to save for retirement still aren't doing it! Despite many warnings about the future of retirement in this country, many Americans still aren't concerned about saving for the future. Quite a lot of us are still taking on debts or spending money, rather than setting a budget for saving and sticking with it.

So what is the takeaway lesson here? Don't procrastinate! Start saving for retirement early in your career, and contribute the maximum allowable amounts to your retirement fund each year. But if you are getting a late start, you can still maximize your savings and plan for a stable future. Call our office for an appointment, and we can show you ways to get back on the right track.

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