Why is Retirement Planning so difficult?
In a survey released in 2023 by Employee Benefit Research Institute it was reported that only about 50% of retirees say that they met their planned retirement date.
Many older works report that they had to work over 4 years longer that they originally expected to work before retiring.
In fact, it will cost you about 8% per year for each year that you start your Social Security Benefits prior to age 70.
If you choose to take Social Security Benefit payments at age 66, you are forfeiting 32% of your maximum monthly benefit amount.
Such a move could have you liquidating any savings outside of Social Security much faster than you anticipated. Add to that the volatility of stock market-related investments, and you could wind up going back to work in your 70s.
Additionally, as we see more and more technology displace workers, many older workers may have to leave their employment much earlier than expected and such individuals are not likely to get any severance compensation.
Retraining older workers to take on new roles is an option but will require commitment of the older worker to take initiative to learn and apply new skills.
Adding to the stress and change management for older workers, many will find themselves in a work environment that will also require new soft skills, behaviors and the need to assimilate into a new work culture at a lower rate of pay.
Many of us have experienced the difficulty and trauma of job hunting.
Those that had a plan to retire but find that they cannot indeed retire, have the additional gap of not having a ready network of colleagues and friends to use as a referral team and shorten their path to re-employment .
Most of the people I know have come realize that the FIRE movement (Financial Independence, Retire Early) is not possible for them. It is time for older and younger workers to reframe their thinking and expectations.
As well, consider the following:
If a person 5 years from their planned retirement age experiences a significant drop in their nest egg due to market volatility, it could wipe out their hopes of having any full-time retirement and may at least have to work part-time for the rest of their lives.
Could the problem be that we were led astray by a social expectation that retirement begins at age 65 and means endless days traveling and playing golf?
This seems to me to be the root cause of why so many are disillusioned and are caught off guard, without a plan to make their way to finding peace in working longer in their "golden years".
For the readers who are in their 30s and 40s, take heed and reset your thinking. For those in your 50's and 60's, it is not too late, we just need to be more creative to make up for some lost time.
Start now by setting up a robust system of savings and building continuous wealth using our unique and powerful Private Family Banking system.
You will not regret working with me to "re-think your thinking" about money, growth, taxation and multi-generational wealth transfer and re-tool your model of what is means to "retire" in the decades ahead.
Don't waste another day, TOMORROW STARTS NOW!
Corem Deo!!
Chuck DeLadurantey
Private Family Banking Partners