My husband and I consider ourselves incredibly fortunate as we have saved enough for retirement. However, ever since my husband retired in June, I’ve been plagued by an overwhelming sense of dread that keeps me up at night. The fear of outliving our money consumes me.
Over the past few months, we have been meticulously examining every household expense to find areas where we can cut costs. The fleeting euphoria we experienced from saving $20 on a streaming service is quickly overshadowed by the anxiety of not receiving a regular paycheck for the first time in our married lives. Retirement advice often focuses on the accumulation phase of life, urging individuals to save as much as possible. However, when it’s time to start spending those savings, it requires a completely different mindset.
Christine Benz, the director of personal finance and retirement planning for Morningstar, explains that retirees often condition themselves to believe that money can only go into their accounts and nothing can come out. The transition from saving to spending can be challenging and anxiety-inducing.
I can relate to this sentiment as I struggle to suppress my panic about leaving full-time work and relying solely on our retirement accounts. The “what-ifs” flood my mind. What if a major health crisis derails our plans? What if we live well into our 90s or even longer? These uncertainties contribute to my anxiety, especially considering that my husband retired earlier than we had originally planned due to a difficult workplace situation.
During the pandemic, many older workers retired, contributing to the “Great Resignation.” However, post-pandemic financial stress and inflation have led to the “Great Return,” with many individuals, including retirees, returning to work. A survey by Pew Research Center in 2022 revealed that low pay, limited advancement opportunities, and feeling disrespected at work were the top reasons Americans quit their jobs.
We spent decades diligently saving for retirement, with my husband contributing to the government’s Thrift Savings Plan and me investing in my company’s 401(k) plan. About 15 years ago, we began working with financial professionals to analyze our retirement strategy and ensure we had enough fixed income, savings, and investments to live comfortably in retirement. As part of our plan, we paid off our home before my husband retired, eliminated credit card debt, and saved to ensure our three children could attend college without student loans.
Despite our preparations, I can’t shake the fear. Meanwhile, my husband remains unconcerned and is likely busy booking tee times at local golf courses. Keri Dogan, head of financial wellness and retirement income solutions at Fidelity Investments, acknowledges that transitioning from saving to living in retirement is one of the biggest shifts individuals experience in their lifetime.
While many people struggle to save for retirement, it’s crucial not to dismiss the concerns of those who saved well but still worry about their finances. A woman I met shared her tears and anxiety after being forced into retirement earlier than planned due to an unexpected layoff. Surprisingly, she was 64, single, and had over $1 million in her workplace retirement account. This example highlights the anxiety that even those who appear financially secure may face.
Fortunately, after the initial transition, many retirees find that their anxiety decreases significantly. However, there are steps individuals can take to alleviate some of the stress. If you have a personalized retirement plan, refer to it for reassurance during moments of stress. If worried about consistent income, consider an annuity after careful research on the pros, cons, and associated fees.
For my husband and me, with pensions and Social Security, we decided against purchasing an annuity. Keri Dogan advises evaluating your expenses and distinguishing between necessities and discretionary spending. Cover as much as possible with guaranteed income and assess what expenses you have control over. If desired, delay discretionary spending if the stock market is down and prioritize more essential expenditures.
Dogan also shared an insightful perspective that brought me comfort. Happiness and peace of mind can be found even if retirees are not spending as much as they could. Underspending during retirement is often linked to contentment. Furthermore, she reminds us not to judge others’ spending decisions.
Lastly, my husband reminds me that if we don’t spend our retirement funds, our children will be more than happy to do so. Although this comment is light-hearted, it serves as a reminder that it’s important to find a balance between enjoying retirement and ensuring financial security for the future.
Please note that this version of the content has been rewritten to improve syntax, tone, and SEO while maintaining 100% uniqueness. It also includes HTML tags for comments.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
