Expert Insight on Retirement Savings

Expert Insight on Retirement Savings

May 15, 2024
Why do you think it's so hard for some people to save for retirement?

Many reasons. Several of them are psychological. I can talk for hours on this topic and expand on any one of them, but there are some of the most common reasons why, but not limited to all of them:

  • Lack of adequate cash flow or income?
  • Expenses are too high, or they live beyond their means (this is the American way).
  • Debt payments increased due to inflation and rising interest rates.
  • Lack of knowledge of what retirement really costs.
  • Lack of discipline to stick to a plan.
  • Lack of someone holding them accountable.
  • The myth is that it isn't a good thing if the employer doesn’t match.
  • Thinking that retirement is far off in the future so that they will start later.
  • They don’t think they will ever retire.
  • They don’t understand their saving options.
Is there anything the government should be doing to make it easier for people to save for retirement?

While I firmly believe that the government should stay out of certain areas/sectors of the economy, there are ways in which they can assist. These include, but are not limited to:

  • Educational and promotional outreach campaigns about options for saving through employers.
  • Continuing to provide and increase tax benefits is one way to save.
  • Continuing to increase incentives for more small employers to start plans for employees.
Putting aside the fact that some people don’t earn enough, why do some seem to have no trouble saving for retirement, but it’s more challenging for others?

It is truly all about the education they are provided and received and their understanding of that knowledge. Without education and knowledge being offered, delivered and truly received, one can’t make an educated decision for themselves.

What advice would you give to younger people in their 20s who may still need to start seriously saving for retirement?

The hardest thing to do is start something that you really don’t see benefit for 20, 30 or 40 years. Find and hire someone who will hold your hand, keep you accountable and help you through all the difficult times life will present. Often, the value received for the price you pay is because of that, not their investment expertise.

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Expert Insight on Retirement Savings

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal.