Best Retirement Tip for National Face Your Fears Day

Today we celebrate National Face Your Fears Day. I guess they do have a day for everything!  This day provides us the opportunity to pause and ponder about those things that keep us up at night. Here a few common well known phobias you may recognize:

  • Arachnophobia – The fear of spiders
  • Claustrophobia – The fear of small spaces
  • Aerophobia – The fear of flying
  • Acrophobia – The fear of heights

Chrometophobia, ever heard of it?

This phobia often has a major impact on the individual as it often includes their fear to handle or touch money, fear of financial disasters, or simply the responsibility that comes along with money. Although only a small percentage of people suffer from full blown Chrometophobia, the vast majority of Americans suffer from general financial fears including housing costs, medical bills, credit cards, and retirement to name a few. 

Retirement is America’s top financial worry

According to the 2017 Gallup annual Economy and Personal Finance Poll, Retirement continues to be Americans’ top financial worry! 54% of Americans to be exact are very or moderately worried! [i]

The top three concerns are:

  • Not having enough money for retirement (54%)
  • Not being able to pay medical costs in the event of a serious illness or accident (54%)
  • Not being able to pay medical costs for normal healthcare (41%)

The poll further breaks down number the one worry ‘Not having enough money for retirement’, by income, and the numbers climb as expected. For those earning less than $30,000 (64% concerned), $30,000 to $75,000 (58%), and lastly $75,000 or more (reduces to 48%). Therefore, it is safe to say that regardless of income, nearly half the population is concerned about not having enough for retirement.

Planning ahead

The Northwestern Mutual 2017 Planning and Progress Study tells us that 82% of Millennials, 71% of Gen X, and 54% of Baby Boomers reported that their financial planning needs improvement. The study also tells us that 45% of American spend up to half of their monthly income on debt! It is no wonder we need help planning for retirement. In a 2016 survey, Northwestern Mutual may have stated it best, “What seems to keep people up at night more than anything else is the unexpected.” [ii]  So, here’s our best tip; planning ahead for your retirement can be key to easing your retirement worries.

CoPilot, PAi’s managed 401(k) retirement savings service will help you plan for retirement. With CoPilot, you’ll see just how many years of retirement your savings will buy, not just an account balance. CoPilot uses the Years of Retirement planning calculator to help translate 401(k) dollars into how many years of retirement you can afford. Life is full of surprises, don’t let your retirement be one of them.  

Let’s talk about ways to help you reach your retirement goals. Contact us online or give us a call at 800.236.7400.

References:

[i] McCarthy, J. (2017). Gallup News. Americans’ Financial Anxieties Ease in 2017. Retrieved from:   http://news.gallup.com/poll/210890/americans-financial-anxieties-ease-2017.aspx.

[ii] Williams, S. (2016). The 13 Biggest Financial Fears of Americans. What financial fears are keeping you up at night? Retrieved from: https://www.fool.com/investing/2016/07/17/the-13-biggest-financial-fears-of-americans.aspx

Rob Bishop – Sr. Manager of Corporate Accounts and Government Savings - rcbishop@pai.com - 800-236-7400 x3341

Rob is a subject matter expert on 401(k), retirement savings, state mandates, broker dealers and the overall competitive landscape.