Which Generation Struggles in Retirement Savings?

Due to our constantly changing world and needs, millennials, baby boomers and generation x are continuously facing challenges and one of them is money issues. There is a new study that finds each generation is in a moment of dramatic change in terms of their financial well-being and retirement planning. Take a look at how each generation fairs in today’s economy.

1. Baby boomers

They have an average financial wellness score of 5.7 out of 10. About 29% say they are confident that they can replace at least 80% of their income in retirement, while only 16% have long term care insurance policy.

2. Generation X

This generation has made significant improvements when it comes to their finances in recent years but they are still most likely overwhelmed with financial stress. Only 17% say they are confident that they can replace at least 80% of their income in retirement.

3. Millennials

They have an average financial wellness score of 4.6, the lowest among all generations. However, they will most likely contribute to either Roth 401(k) or Roth RIA. Despite being the only generation not to prioritize retirement planning, they still have time to prepare for this. 

Source: http://www.cheatsheet.com/personal-finance/which-generation-is-worst-at-saving-enough-for-retirement.html/?a=viewall

5 Retirement Nightmares To Avoid

When people think of retirement, free time for fun, hobbies and relaxation comes to mind. Although these are parts of a typical retirement, unfortunately, there can also negative aspects.

With aging comes deterioration of health. With that said, some people experience medical conditions even before they can pay off their homes.

Retirement can be enjoyable if you can identify the five nightmares that can ruin it for you sooner.

Here are five retirement nightmares to avoid:

1. Getting Bored

Having more free time is a good thing, however, having too much free time will get you bored and even depressed.

The sharp change in routines, from working for many years then a sudden halt, can be difficult to adjust to.

A time-tested way to combat boredom is to seek out friends and people to spend time with, to learn new hobbies, and to remain active on your own or socially.

2. Feeling of Loss

Retirement can be a time of loss in many ways. It begins with letting go of your job which leaves you missing professional relationships and work friends you made. From working regularly to working less or not at all may leave you with a feeling of loss.

Loss can be difficult for anyone to handle, but getting reconnected with loved ones will help. Loss will always hurt but understanding that it is a normal part of life and talking to a professional if you need to can help.

3. Feeling Less Important or Unimportant

Aside from lessening your work hours or retiring completely and leave you feeling a great loss, it can also make you feel less important.

If you are used to people from work depending on you on a regular basis, it can be strange to no longer receive calls or emails.

Even if some of these incidences might have been annoying on a regular basis, they make all of us feel important, and we miss the feeling when they disappear.

Joining a hobby group such as bikers, runners, or even signing up for a gym membership, can help you find the attachment you may have missed from your former colleagues.

4. Changing Health Conditions

Health issues can happen at any point during our lives, but along with aging, our bodies degenerate, and we become at more risk at experiencing more health issues.

Such health conditions may even leave you unable to do the same amount of physical or mental tasks you used to.

Prioritizing your health can help prevent such conditions and risks. Engage in exercise regularly in order to stay healthy, eat well, and see your doctor regularly.

5. Having Critically Limited Resources

Expenses increase and unexpected emergencies can derail a retirement budget. Having insufficient funds can make living comfortably difficult during retirement. The best way you can prepare for retirement is to save as soon and as much as possible.

If you are already retired and find that you don’t have enough resources, you may need to make some changes. Find out where you can cut costs, and if necessary, get professional help managing your money. Consider a part-time job for extra income.

Retirement typically includes many of the best years of a person’s life, however, when you have to face any of these five retirement nightmares, the pleasures of retirement can be greatly decreased.

Sources:

http://wallstcheatsheet.com/personal-finance/the-side-you-never-think-about-5-ways-retirement-can-go-bad.html/?a=viewall

https://www.ltcoptions.com/

3 Money Mistakes in Retirement

Saving for retirement can be daunting and all it takes is a couple of mistakes that can bring financial woes in your life once you retire. So it’s recommended to be on your guard all the time in order to have a financially stable life after retirement.  According to Motley Fool contributors, there are three ways to go broke in retirement and they are the following:

1. Living beyond your means
2. Long term care or medical expenses
3. Debt

Source: http://www.fool.com/retirement/general/2015/03/16/3-easy-ways-to-go-broke-in-retirement.aspx

5 Tips to Protect your Retirement Income

People nearing retirement should start thinking about protecting their assets and ensuring retirement income needs are satisfied now and in the future. For your guidance, here are five ways that can help manage the risks to your retirement income:

1. Plan for health care costs and consider getting long term care insurance.
2. Expect to live much longer.
3. Prepare for inflation.
4. Make investments for growth without too much risk.
5. Withdraw less from savings.

Source: http://www.forbes.com/sites/fidelity/2015/03/04/five-ways-to-protect-your-retirement-income/