We all know that retirement planning is a practical necessity, even if it sometimes feels like an expensive luxury. Unfortunately, far too few Arkansans have the savings they need to spend their golden years in comfort. In fact, the United States Census Bureau estimates that nearly half of all Americans between the ages of 55 and 66 have no personal retirement savings whatsoever. While different people have different reasons to put off planning, procrastination is a common excuse that can have dire long-term consequences.
Why Do People Put Off Retirement Planning?
You do not need to be a financial advisor or wealth manager to know that putting off retirement planning could lead to some less-than-ideal outcomes. Nevertheless, procrastination may be among the leading reasons Arkansans have insufficient savings. Here are some of the reasons many people mistakenly think they don’t need to start saving now:
You’re Years Away from Retirement
For better and for worse, retirement can seem like a distant reality—a place that we all know we might eventually reach but one that doesn’t demand immediate action.
However, saving early could provide the foundation for a healthy and wealthy retirement. While creating a comprehensive retirement plan could seem like an extraordinary amount of work, there’s no reason you have to do it alone. A financial advisor could help you figure out how to start saving in a way that accentuates your long-term goals and aspirations.
You Have More Immediate Financial Concerns
Saving money isn’t easy. For many people, money is tough to come by—squirreling cash away for the distant future could be difficult, jeopardizing their ability to negotiate present debt and impending obligations.
Somewhat surprisingly, prioritizing debt-free living can put otherwise responsible adults in a difficult position. While paying off a mortgage before you’re 50 could feel fulfilling, a paid-off house doesn’t pay the bills. Even if you’re counting on a future home sale to finance all or part of your retirement, there’s no guarantee that the property market will be booming in another 10, 20, or 30 years.
If recent years have taught us anything, it’s that financial conditions are fleeting: what’s true today might not be true in a decade. You likely stand your best chance of withstanding adversity when you consider the big picture, recognizing that your long-term needs are just as important as present circumstances.
You Think Social Security Has You Covered
We’ve heard for years that Social Security is on its way out. Nevertheless, far too many people expect that, even if they never get around to making a proper retirement plan, Social Security can—at the very least—put food on the table and keep the electricity on. However, relying on Social Security is a dangerous gamble, especially if you’re a business owner or self-employed.
Everyone—no matter their income and work circumstances—can benefit from thinking beyond Social Security and looking at investments that grow with time. Consider speaking to a wealth management professional about how you could benefit from:
- An individual retirement account, or IRA
- An employer-sponsored 401(k)
Your Family Doesn’t Support Your Plans
In our many years of experience, we’ve seen how couples’ different spending habits can adversely impact individual retirement goals.
For example, some people know exactly what they want from retirement—but don’t know how to explain the importance of planning to their partner. While having a spendthrift spouse can certainly make retirement planning all the more challenging, simply having a well-considered conversation about the benefits of long-term saving is often enough to make a loved one see the light.
Quraishi Law & Wealth, for instance, offers consultations for married couples. We never tell our clients that they have to hoard their money or forego the pleasures of everyday life for the future’s sake. Instead, we help families increase their wealth in a way that lets them enjoy the present while remaining confident in future possibilities.
Contact Us Today
Procrastination might seem easier than retirement planning, but it won’t get you the happy, healthy retirement that you deserve. Please send Quraishi Law & Wealth a message online or call us at 870-275-4304 to explore your options for a better tomorrow.