Is It Possible to Relieve Financial Worries?

June 18, 2022

Retirement Planning

According to a recent poll, roughly half of couples disagree on how much money they should have saved by retirement. ¹ New study suggests, however, that couples who work together on financial planning are happier and more successful in retirement. Couples who score high on cognitive interdependence (meaning they think of themselves as a couple rather than as individuals) are more likely to engage their spouses in retirement planning. Better still, if they agree on their retirement financial objectives, they tend to feel better about themselves and approach retirement with more confidence – together. ²

Outliving Your Savings

According to the Aegon Center for Longevity’s 2019 poll, over half of Americans are concerned about running out of money in retirement. People in their 60s and early 70s who retire may believe they have enough assets to endure 20 years. But what if they live a another 25 or 30 years? The last thing you want to worry about as you get older is running out of money, especially if you’ve started accruing long-term caregiving expenses. Segmenting your retirement into stages and matching each stage with a different income source is one method to better plan for a longer-than-expected retirement. That way, whether you’re in your 60s, 70s, or 80s, you’ll know where your money is coming from.

Earning Enough

Many Americans may not be earning enough to save enough for retirement. According to a recent report, 70% of Americans live paycheck to paycheck. Not only does this leave little money for savings, but 63 percent of people say they aren’t earning enough to live the lifestyle they desire now. ⁴

Mental Well-Being

It should also come as no surprise that more than eight out of ten Americans of all ages think that financial security is essential to their mental and emotional health. ⁶

Old Age Care

Seven out of ten persons want family members to offer long-term care if they need it, but most don’t want to bother their loved ones. ⁸ That’s quite a conundrum. Being able to share your assets or pay family members to care for you is one option to alleviate this load. This is especially crucial if one of your children has to work less hours or stop entirely to care for you. By pooling your funds, you may be able to fulfill your desire for family care without putting your children’s livelihood at risk.

Content prepared by Kara Stefan Communications.

¹ Fidelity. “2021 Couples & Money Study.” https://www.fidelity.com. Accessed March 7, 2022.

² Veronica M. Lamarche. Psychology Today. Feb. 9, 2022. “For Couples, a Happy Retirement Requires Shared Goals.” https://www.psychologytoday.com. Accessed Feb. 9, 2022.

³ E. Napoletano and John Schmidt. Forbes. March 25, 2021. “Top 4 Retirement Worries—And How To Handle Them.” https://www.forbes.com. Accessed Feb. 9, 2022.

⁴,⁵,⁶ Insurancenewsnet.com. Feb. 8, 2022. “Hard Times: 7 In 10 Americans Say They’re Living Paycheck To Paycheck.” https://insurancenewsnet.com. Accessed Feb. 9, 2022.

⁷,⁸ Ayo Mseka. Insurancenewsnet.com. Feb. 7, 2022. “Nationwide: Two-Thirds Of Adults Worry They Will Become A Burden.” https://insurancenewsnet.com. Accessed Feb. 9, 2022.

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