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Last week, I urged those who are doubting Thomas’ to Get Over It Already, Invest in Your Future. Knowing that this nudge was not going to change everyone’s mind, I thought about addressing several reasons to keep working.
Procrastination
I’ll start with this one as I can truly relate. As somewhat of a perfectionist, I tend to put tasks that I have haven’t figured out exactly how to get done perfectly. Most folks procrastinate occasionally, sometimes on purpose, at other times we just allow less important tasks to take up the time that should be devoted to more important things. Apparently, psychologists say that procrastination is one way we cope with the anxiety of starting or completing a task, or making a decision. So for many retirement planning causes anxiety, does not have an exact answer and often gets left aside. As time goes on, procrastination always makes a difficult situation worse because wasted time and lost opportunities never make tomorrow better. A great deal of research has shown that Americans aren’t dealing with retirement planning seriously. As a financial planner using logic, reason and facts to persuade procrastinating prospects and clients that retirement planning and saving are priorities usually doesn’t work. So don’t worry, be happy: go out and buy an expensive boat or a sports car and keep on working.
Spend All Your Money (and then some)
I read last week how the majority of Canadians struggle to save. While some folks don’t have enough money to get by, how can the majority avoid putting money away for later? Have a look: Many are finding themselves caught having to repay extraordinary, outstanding debts. And to add insult to injury, interest rates are expected to rise this summer, so clearing debts probably won’t get any easier. In a report that surfaced recently, 38 per cent of Canadians surveyed say they had no savings at all. So if you spend beyond your means, it is easy to imagine you will need all your disposable income to pay debts, such as credit card, car loans or mortgages. In a recent survey, 12% of those surveyed said they couldn’t save because “they shopped beyond their means.” And nineteen per cent of those surveyed under the age of 35 said they spent too much on shopping. So don’t worry about budgeting, choices and skills required in making plans for a healthy financial future, keep on working.
Complain About the Weather
Have you ever noticed how everybody complains about the weather, but nobody does anything about it. Well the same can be said for all the baby boomers, who continue to complain about the lack of retirement savings, but do precious little to change the situation. In a recent survey, nearly half of the boomers polled said they check their retirement balance at least once a week, eighty percent check the amount monthly. But despite the interest levels, only 18% of boomers said they had adjusted the savings to improve the future. It seems that complaining about market volatility and the crash that affected their investments has sapped the energy required to reallocate their investment portfolios. Only 5% of boomers have a written retirement plan, whereas half of the surveyed advisers said they suggested the idea to clients.
The Cherry On Top
So if you have resigned yourself to continue working and aren’t stressed about saving for your future, you may want to read ahead. Careers are ending earlier than expected, so you may end up working as a Walmart greeter. There are surprises in store for folks who are expecting to retire on a date of their own choosing, according to a recent poll. While the majority (83%) of baby boomers over 50 believe they will retire on the date of their choice, almost half (41%) of those who have already retired report that their retirement date was unplanned. So look out for your health and beware of craft employers, or you may join the rising number of retirees returning to the workforce because they need the income (41% in 2011 compared to 32% in 2010).
Drop us a line and let us know what side of the fence you are on.
Author: Robert
