Your child is moving out of the house, your other child is about to leave for college, and you’re heading into your 50’s. You may be thinking there’s still time to fix up the house or take an extended vacation so why isn’t life more fun? Has it become dull? Maybe not quite yet but just around the corner. Here’s Client First Capital’s few advices may help

“It’s common in people in their 40s and early 50s,” says Anthony L. Rostain, professor of psychiatry at University of Pennsylvania Perelman School of Medicine, “they start becoming anxious that they won’t have enough money to retire on time or live comfortably when they get there.” It comes on slowly, he says, adding “it doesn’t happen overnight unless something cataclysmic happens to your career.”

What cataclysmic event would that be? Getting fired or laid off can certainly trigger it. However, there are people who have been living with the anxiety of lack of planning for retirement before they were let go from their jobs. They know how important it is but just put if off because life seems too short and there are so many things to do. But once you realize that time has become more precious than money then decisions need to be made about what work you should do, where to live, and other big issues that affect one’s emotional well-being.

Retirement Anxiety Can Hit Anyone! How Do You Cope?

One 2010 survey conducted by MetLife Mature Market Institute found out that about 1 in 3 Americans has not planned for their retirement while nearly 1 in 2 has less than put away. The report also showed that the average amount saved among all respondents was a meager 

Well, if you can relate to this and want to know what to do next then here are some tips:

Set Clear Goals and Take Small Steps Toward Retirement

Despite the fact that many people realize they need to save more money for retirement it can be easy to get overwhelmed with such a big goal. So how do you manage your anxiety about planning well? Well, think of saving for retirement like taking small steps which will eventually lead you toward your destination. 

Start by breaking down how much you’ll need by defining your retirement needs and wants. Think about how much income you might need and what lifestyle you hope to live (traveling the globe, buying a boat or living in a large house). You can work out your yearly expenses by using online calculators for this exercise.

Also figure out your retirement age and your expected lifespan; this will give you an idea of how much money you’ll really need since there is no one-size-fits-all amount that can be given due to different lengths of time people spend in their golden years.

Crunch the Numbers on Your Savings

Another way to feel less anxious while planning is crunching the numbers to see whether or not you’re on track with where you want to be at certain points throughout your life.

If you’ve already retired, the best way to do this is by looking at your IRA. If you have an employer-based 401(k) or 403(b), chances are it will be rolled into an IRA when you retire. Check this account to see how much money you have available for monthly expenses, what contributions you’re allowed to make, and how long they’ll last based on your current balance.

If you’re working towards retirement, use online calculators that take your expected income into consideration during retirement. Many of these calculators also factor in inflation rates which can help predict future prices of things like food or housing. If any of these numbers seem off track once they are plugged in, adjust accordingly until the outcome is as close as possible to reality.

Taking the time to see where you stand now and what route you want to go down can save a lot of headaches in the future. By knowing what will be available for you once you retire, not only do you give yourself more opportunities to succeed financially, but it also allows for better planning should other things come up along the way (e.g., illness, college tuition).

 

Client First Capital is offering Financial Planning advisory services for your better future so you can invest wisely. If you want to know more about it you can contact us or you can call on these numbers +971 55 425 6025 +91 903 504 4490. Our team will get in touch with you for all the further requirements.