Thursday, 16 May 2024
by BD Banks
Retirement is one of the biggest adjustments any of us may ever experience. We spend a lifetime building a career until, one day, it’s no longer part of our lives. Even if we’re not shaken by the loss of identity or the new gaps in our schedules, we must adapt to a new financial reality.
If you find yourself looking toward retirement with more anxiety than excitement, this article is for you.
Some of us experience a little anxiety when we think about retirement finances, and who can blame us? Think about the last time you saw an article about retirement. Was it good news? Probably not. Hair-on-fire stories tend to draw more interest. If we’re not hearing or reading about how many Americans have too little put away for retirement, we’re watching experts fixate on the “safe” amount of money to withdraw from retirement accounts.
Even if you’re cool as a cucumber and rarely get worked up about anything — including personal finances — it would be natural for all the negative talk about retirement readiness to get under your skin. There are some situations in which feeling a little anxious may actually be good. For example, if you have an unusual mole and anxiety leads you to make an appointment with your doctor, that’s a good thing. If you cancel plans because the idea of driving on an ice-covered highway leads to anxiety, that’s a smart move.
However, feeling anxious because other people (who don’t know you or your situation) say you should be anxious can be downright harmful.
You can’t panic without experiencing anxiety, and anxiety is the enemy of rational decision-making. A 2016 research study published in The Journal of Neuroscience discovered the following:
Putting a stop to panic is easier said than done. Just know that when you’re feeling anxious, you may be in no condition to make decisions that will impact your future.
The impact of anxiety on the human body can cause both minor and major health issues, including:
If you’re concerned about retirement, anxiety is the enemy. After all, you want to spend those years feeling good. As long as you’re as healthy as possible, there are ways to figure out any financial problems you might be experiencing.
All the doom reporting about how ill-prepared Americans are for retirement doesn’t take into account that we’ll all have different needs when the time comes to retire. For example, while one person may dream of traveling the world, another may dream of spending long days fishing with a friend. While one will need $1 million to be comfortable, another can get by on guaranteed income and an individual retirement account (IRA).
According to Annuity.org, asking yourself these questions will give you a better idea of how much money you’ll want available in retirement:
Once you have the answers to these questions, you’ll be closer to knowing how much money is “just right” for your situation.
Eventually, we’ll all be in (or floating somewhere around) the retirement boat. Rather than stressing about it now, we can take control of our futures by hiring a fiduciary financial advisor. A fiduciary is someone who is held to the highest standard of conduct and is legally obligated to act on your financial behalf rather than their own.
Fiduciary financial advisors are not just for folks who expect to retire rich or people who’ve already spent decades saving and investing. They’re for everyday people, too — people whose real lives might have left them with a wee bit less put away than they would like.
One of the best things about working with an advisor is this: You can put your anxiety to bed with the reassurance that you’re doing everything possible to prepare for the future.
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Dana George has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.