|
Get Up, Get Going
Boost Your Retirement Confidence
Remember what it was like to fall down as a kid? You could cry about it or bounce back and keep playing. If your retirement plan did a face plant in the past year or so, you may feel a bit scraped up or ready to burst into tears. And you're not the only one. Americans are reporting new lows in retirement confidence in 2009.
According to a recent survey, only 13% of respondents say they are very confident about having enough money to retire comfortably. That's down from 18% in 2008 and 27% in 2007. Among current retirees, only 34% are optimistic about covering their basic expenses (down from 48% in 2001) and just 25% expect to have enough to pay for medical expenses (down from 41% in 2007).*
Regain Lost Ground
Serious setbacks aren't stopping many Americans from dusting themselves off and getting back in the game. According to the survey, those who have lost confidence are taking actions to shore up retirement savings:
- 81% have cut spending.
- 38% are working more hours or have gotten a second job.
- 25% have sought advice from a financial professional.
- 25% are saving more.
In fact, of those participating in employer-sponsored retirement plans, the vast majority (72%) are continuing to save the same percentage of salary, and 16% actually increased contribution rates. Only 11% have decreased the percentage of salary they save for retirement.*
A Fresh Start
It's time to modify plans and find new ways to achieve the ultimate goal of retirement. Try these tips for getting back on track:
- Define goals. Scaling back expectations doesn't mean giving up what matters to you. Make a list of your goals and the costs associated with each so you can track your progress (see accompanying worksheet).
- Live below your means. If you challenge yourself to spend less than you earn every month, you'll feel empowered – plus you'll have more money left over for saving.
- Build emergency savings. Keep a comfortable chunk of money (three to six months of living expenses) in a liquid account so you don't have to reach for credit cards or tap retirement accounts when unexpected expenses come up.
- Take advantage of retirement accounts. Don't miss the opportunity for tax-advantaged savings in an individual retirement account (IRA) or employer-sponsored retirement plan.
Put Your Goals in Writing
| Goal |
Timeframe |
Price Tag |
Where I'm Saving |
Need |
or Want? |
| e.g., Save $5,000 a year |
10 years |
$50,000 |
IRA |
 |
|
| |
|
$ |
|
|
|
| |
|
$ |
|
|
|
| |
|
$ |
|
|
|
| |
|
$ |
|
|
|
|
