By Annie Kvick, BEd, CFP
How do you feel when you hear the word retirement? If you are like many Canadians, the word sends pangs of guilt and discomfort through your mind and a fluttery nervous sensation through your stomach. Why? Because many people have the vague feeling that they aren’t doing enough to plan for retirement, but they don’t act because they are nervous that the situation will be worse than they imagine.
So how do you banish retirement planning fears?
1. Shut out the noise. Like every aspect of our consumer society we are fed an image of retirement that includes European travel, sipping champagne on a cruise ship and hand holding strolls on sandy beaches. Then, while we’re absorbing an idealized vision of life after work, we’ll read, watch, or hear some study about how we’ll need x amount of money just to get-by in retirement. That’s usually followed by a statement that most people aren’t close to meeting that goal. Binge watching Netflix starts looking pretty appealing at that point. It’s time to stop looking at the scary forest and concentrate on your tree.
2. Let go of your now’s not the time mindset. People 20-35 will often convince themselves they are too young to have to worry about retirement. Between 35-45 there’s way too many expenses just dealing with the present, how could they possibly save? Then 45+, they believe they missed the boat and even though they know they have to get to where that boat was headed, they’re afraid to jump in and swim to catch-up, and with each passing year the boat seems further out of reach. If those mindsets were true it would never be time to plan for retirement. The truth is, it’s always the right time, the smallest step is better than no step, and a small step repeated creates momentum.
3. Give-up the old notion of retirement as an ending. Webster’s defines retire as“1. To withdraw, as for rest or seclusion. 2. To go to bed. 3. To give up working or serving, usually because of advancing age.” That vision of retirement is as outdated as the new vision of globetrotting seniors is one dimensional. Retirement is a fresh chapter, some people become involved with causes that are important to them, or they start a business or learn new skills just for the joy of learning. Take the time to create a vision of your retirement that excites you. How can you have an exciting vision for your future and not want to plan for its reality?
4. Look at how planning has made a difference for others. A study by the Canadian Financial Planning Standards Council of 15,000 Canadians over three years showed that 81% of those with a comprehensive plan feel more on track toward their financial goals. The study also showed that those with a plan are more confident that they can deal with financial challenges and have an improved ability to save.
Don’t let fear keep you from the peace-of-mind that a plan can provide. You deserve to be excited about your future.
