INDIANAPOLIS, Ind. (INS) – While retirement is presumably a time for people to relax and unwind, the latest research shows it’s become more stressful for many, because of a lack of financial planning in the years leading up to it.
Studies by the Insured Retirement Institute provide alarming new statistics that 42 percent of Baby Boomers and 40 percent of those born in Generation X have yet to save any money for their lives after retirement. Cathy Weatherford, the institute’s CEO, says saving begins with setting a goal.
“Always when we set goals, we do better towards achieving them,” says Weatherford. “And so, thinking about at what age you would want to retire, how much money you would need, and then mapping out your strategy.”
According to the institute, lack of a strategy could turn into a struggle to pay for basic living expenses and health care in later years. National Retirement Planning Week is part of Financial Literacy Month and close to Tax Day, this year on April 17.
The Insured Retirement Institute says learning how to plan and save, and using the services of a financial adviser, are keys to being prepared. And Weatherford says there’s still time for people, even in the late stages of their careers, to start the process.
“Today is the day, the best day to get started so that you can prepare for a good, financially sound retirement.”
She adds taking steps like paying off credit cards, downsizing your home or even moving to a less expensive city or area can help reduce your costs and allow you to focus on saving for the future.