While most people look forward to enjoying a relaxing, carefree retirement after years of hard work, for many, the thought of retirement can also bring a sense of stress and worry. After all, retirement is a major life-changing event, so it's only natural to feel a little uneasy about the future will hold. Whether you plan to retire in the next few years, or the next few decades, there could be multiple reasons why the idea of retirement scares you. Take a look at some of the most common retirement fears and find out how you can overcome them.
Common retirement fears
Fear #1: Not having enough saved for retirement
The number one fear surrounding retirement is the fear of running out of money. According to a report from the Center for Financial Innovation, 42% of American adults surveyed have no retirement savings. Even people who are actively saving for retirement can feel financial anxiety about the future. Even if you are short on savings, it's never too late to start putting away money for retirement. However, the earlier you start, the more time your money will have to grow, thanks to the power of compound interest. Wondering how much you should save? A retirement savings calculator can give you a good idea of the amount you need to save to support your intended retirement lifestyle.
Once you have an idea of how much you need to save, you can begin automating contributions to a retirement account, such as a 401(k), Roth IRA or traditional IRA. With years of consistent saving and investing under your belt, you'll feel more confident when your retirement date finally arrives.
Fear #2: I'll be bored
Some people fear that once they leave the working world, they'll feel bored, lonely and restless. While retirement is meant to be a time to relax, this doesn't mean it has to be boring! Filling your retirement days with hobbies, travel, or volunteering can broaden your social circle and help stave off boredom. Start thinking about the activities you enjoy, but might not have enough time to do right now. Rest assured that once you retire, you'll have much more time to pursue these interests.
Fear #3: Health issues
Many people are concerned about the physical health changes associated with aging. Fortunately, there are ways to be proactive about maintaining your health and wellbeing as you age. Even small lifestyle changes, such as exercising and eating well, can contribute to years of healthy living. Staying socially engaged with others is another way to take care of your mental and emotional health. When planning for retirement, health care expenses are an important factor to consider. It's helpful to understand your options and know how much you need to save to cover the costs of health care and long-term care support if you need it in the future.
Overcome retirement fears and get help preparing for retirement
Planning for retirement can be stressful, complicated and overwhelming, especially if you're doing it alone. At Wright-Patt Credit Union, your retirement goals are our passion. Let the CFS* financial advisors and registered representatives on WPCU's Retirement Solutions Team, available through CFS*, help you build a financial plan to help you plan for a comfortable retirement*. Contact us today to learn more.