Retirement Fear: Why Running Out of Money Scares Americans More Than Death

​A recent survey revealed a startling truth: more Americans fear outliving their retirement savings than death itself. This finding underscores the profound anxiety surrounding financial security in retirement.

The Power of Financial Planning
While these fears are prevalent, there's a proven way to alleviate them: comprehensive financial planning. Working with a financial advisor can provide clarity, structure, and peace of mind. In fact, 73% of Americans believe that having a solid financial plan would bring them happiness. (Journal of Accountancy)
Moreover, a study by Northwestern Mutual found that 75% of individuals who collaborate with a financial advisor often experience greater confidence in their financial future versus 45% of people without an advisor. They are more likely to feel financially secure and prepared for retirement compared to those without professional guidance. (BenefitsPro)
 
Adjusting the Plan When Necessary
Financial plans are not static; they can and should be adjusted as circumstances change, which is why we use RightCapital where you can link accounts and revisit the planning from time to time or as your situation changes.
 
If the numbers don't initially align with your retirement goals, consider these strategies:

1. Increase Savings Now: Allocating more funds to retirement accounts can bolster your financial cushion and provide great peace of mind.
2. Reduce Expenses: Evaluate your current spending and identify areas to cut costs. Also consider scaling back your plans in retirement or possibly consider relocating to areas with a lower cost of living, such as certain regions in the U.S. or countries like Mexico.
3. Explore Investment Allocation Changes: Depending on your age, years from retirement and appetite for risk, you could potentially change your investment allocation to be more aggressive.  We would suggest you work with your wealth management professional (someone like us here in Tampa) but that could help you build further retirement resources that would support your overall financial plan.
4. Explore Additional Income Streams: Part-time work, freelancing, or starting a small business can supplement your income both today and in retirement and allow you greater flexibility to meet your financial needs.
5. Delay Retirement: Working a few extra years can significantly enhance your retirement savings and Social Security benefits.  Did you know that delaying taking your Social Security retirement benefits can add an additional 8% per annum to your ultimate benefit and that is tax free build up?
6. Work During Retirement: Many retirees find fulfillment and financial benefit in part-time or consultancy roles post-retirement.  This work also helps buffer the transition from full-time work to full-time retirement, which for many can create significant problems of its own.

 
Take Control of Your Financial Future
The fear of financial instability in retirement is real, but it's not insurmountable. By partnering with a financial advisor and proactively managing your finances, you can navigate the path to a secure and fulfilling retirement. Remember, it's never too late to plan for a better tomorrow.

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