Instead, they claim that peace of mind and enjoying life are primary objectives, reports CNBC in its recent article, “Don’t hold out for that inheritance from your rich grandpa.”
The survey reached out to nearly 500 people ages 65 to 75 with at least $50,000 in investible assets, excluding their workplace retirement plans. When they examined how seniors spend money, it is exactly that. They are spending it, not planning to leave it to heirs.
Having "peace of mind" is the most popular goal for boomers. About half said they want to enjoy comfort and financial security in their retirement. The second most popular goal was "enjoying life," according to 46% of those surveyed. Traveling being one of the top three retirement objectives.
While enjoying yourself and delighting in spending your money as you see fit may not be your first thought when preparing for life after a career, there are benefits to accommodating this and other "soft goals" into your retirement plan. However, do not underestimate the significant impact that emotions play in this decision-making process.
Here are a few ideas and suggestions for savers who want to reach retirement with enough flexibility to “enjoy yourself”:
Formally state your goals. While retirement is the end goal for most of us, you should try to clearly define what you want to achieve once you get there. This ensures you have a destination in mind. Try to be very specific, such as including an objective to save a particular amount, to pay off a debt, or to finance a dream purchase. Grab your significant other and a notepad and write down these goals.
Create a plan. If you just “wing it” then it is not much of a retirement plan. Chart your course to achieve these specific goals. Sit down and consider the changes you will need to make in your spending habits now and your budget to accomplish your savings goals for the future. You might even consider upping your contributions (even if you’re over 50). After you have an outline of a plan, meet with your financial planner and estate planning attorney to formalize it.
Get started and set specific dates to review the plan. Setting goals is good. However, setting dates to review and analyze your progress will keep you more engaged in saving, tracking spending, and keeping the big picture in mind. Mark a calendar or set reminders to get in the habit of checking in. Add this to your monthly to do list when you pay bills. Keeping the big picture in mind will give you more flexibility when inevitable challenges arise.
For more information, on how Family Estate Planning Law Group can help you with your retirement and estate planning today, explore our website, contact us today, and set a date!
Reference: CNBC (November 14, 2017) “Don’t hold out for that inheritance from your rich grandpa”