Many seniors these days find themselves outliving their money. It’s good to have a long life, but you don’t want to spend it fraught with financial worries.
This generation of seniors is living 20 to 30 years longer than their own grandparents and a lot of them are ruing their failure to heed the wise refrain they probably heard repeated throughout the decades: Save for the future.
It’s safe to assume that everybody has heard that tired and prosaic financial advice, but according to various studies, more than 50 percent of Americans nearing retirement have no retirement savings and plan to simply rely on Social Security for their retirement income. Why didn’t they listen?
Reasons Why People Fail to Heed This Sensible Financial Advice
It’s simple enough to understand why so many people who are in retirement or who are nearing it haven’t bothered to save for the future just as they were urged to do. What are their usual reasons?
- They were too caught up in the present and too involved living their busy lives. They preferred to occupy their minds with more immediate concerns than their retirement income.
- They expected to have plenty of time and, thus, put off sitting down to make financial plans for their future.
- They didn’t know how to calculate for their future needs.
- They didn’t like thinking about getting older, so they never bothered learning how. Retirement is more looming than most people expect, and it’s usually too late before they figure out that they need more money to sustain the retirement lifestyle that they desire.
- They didn’t trust the concept of financial security. Having witnessed the rise and fall of the markets many times over as well as seen many retirees lose their carefully nurtured investments in these fluctuations, they felt that saving for the future was an exercise in futility. It was better to enjoy their money while it was there. Unfortunately, all those fond memories aren’t going to fund their retirement.
New Goal: Financial Resilience
How about we let the conversation shift and modify some of the terms? Instead of saving for retirement or the future, make it about saving for the life they want to live? How about making wise money choices to gain financial resilience? It presents a more holistic approach. A positive attitude toward money breeds an overall healthy financial culture that will take care of both the present and the future. This isn’t just about saving money, but keeping track of it, managing it, building emergency funds, protecting assets, and coping with financial pressures.
At the end of the day, the goal is not just the absence of financial hardship but the capability to accomplish life goals. It’s not just about surviving, but actually thriving.