06 Nov Consider More Comprehensive Retirement Planning
No matter the country, the surveys continue to say the same thing – baby boomers are ill prepared for retirement.
Recent research in Australia, the USA, UK and Canada all show a retirement crisis ahead.
Financial surveys can be eye-rolling at times, but retirement research often tells the same story – under preparedness and over expectations.
This indicates those closing in on retirement haven’t put enough planning into the inevitable transition.
The most obvious area is financial and is regularly discussed, but the area almost as crucial and often ignored, is mental.
Something supported by a recent REST Super Fund survey, revealing only 29% of boomers felt they were psychologically prepared for retirement.
Often because retirement isn’t as short it used to be; today, on average, a sixty year old has a life expectancy into their mid-to-late eighties.
Removing work from daily life could make those two or more decades decidedly empty without some sort of purpose or goals.
It’s no surprise that boredom is ranked in the top five concerns baby boomers have with their impending retirement – even some who’ve eagerly awaited their endless leisure time have found it too much of a good thing.
Given that work can provide structure, purpose and a social outlet, an exit from the workforce should really be given the attention as the life changing event it is.
So looking to replace that structure, purpose and social aspect of work should be a prime consideration when planning, but that planning has to happen.
Even in the boomer age group there’s still considerable apathy towards planning for retirement, with 19% of boomers saying their source of financial advice was the media and 12% saying it was their family.
And strangely, when asked about superannuation, nearly a quarter suggested “I’m just closing my eyes and hoping for the best.”
Now Kochie and your brother-in-law might be entertaining, but they’re not going to give you a realistic assessment of where you are, how to plan and what type of retirement to expect.
Those approaching retirement without their eyes open may be in for some hard lessons.