Top 10 Reasons People Put Off Creating a Plan for Retirement

I hear a lot of different reasons why families don’t jump on creating a plan for retirement. Or families who are already enjoying retirement but worry if they’re headed the right direction.

As hard as it is to face, creating a plan for retirement is a necessity for all…

But that doesn’t mean that everyone has to have the same retirement plan.

Today, I’m shedding some light on the most common reasons I’ve heard that families put off creating a plan for retirement and debunking them with action items to fix them.

Reason #10:    “I’m too busy

I can’t tell you how often I hear this. So many people want to plan for a better retirement, but they don’t have time. They think they’ll take care of it tomorrow or the day after that – and before they know it, several years have gone by.

The best advice I can give you is to give us a call to discuss what options are available for you. Sometimes just talking about planning can give you the momentum you need to get the ball rolling.

Reason #9:  It’s too soon

I don’t know how this happened, but many people have adopted the notion that you don’t have to start planning for your retirement until you’re almost there.

This is totally incorrect.

The truth is, the sooner you start planning, the better chance you stand of having the kind of retirement you want. It’s never too soon. Many people start planning in their early twenties!

It’s always an honor to have my clients bring in their children to start a conversation about their plan for retirement, we always have our door open to start this important conversation.

Related: The Major Risks to Family Wealth in 2022

Reason #8:  It’s too late

If you’re already near or past your retirement eligibility date, you may think that whatever you’ve got is what you’re stuck with and it’s too late to do anything about it. And that may not be true. If you’re unsure of what your options are, give us a call.

Even if you’ve already retired, it’s important to consider how you’re receiving income and how long it will last. It’s never too late to revise your income distribution strategy, and I’ve helped plenty of clients who felt they were stuck.

Reason #7:  I don’t need to

I’ve heard this excuse so many times, and it always baffles me. Many people think that because they’ve been diligent about contributing to a savings account, they’re all set.

While saving for retirement is good, you also need a plan for income distribution once you enter retirement.

  • Are you certain that what you’re saving will be enough?
  • Have you considered your distribution plan?
  • What about taxes?
  • What about inflation?
  • And are you sure your money will be properly invested? There may be other, better options for you, and it may prove worthwhile to look into them.

Reason #6:  I don’t have enough money to get started

This excuse seems marginal at first glance, but there is some truth behind it. You need to have money to save or invest money. However, unless your bills are exactly equal to or greater than your net income, you DO have enough to get started. Starting small is better than not starting at all, and if you plan well, you’ll eventually have more to work with.

Reason #5:  My finances are a mess

This is all the more reason to seek out a professional who can help you sort through and understand your assets.

Perhaps you have a 401(k) from a former employer that has not been rolled over, a couple of savings accounts, a trust from a deceased relative, some stocks that your parents bought in your name when you were younger – a circumstance like this can be confusing, but leaving it as it is won’t improve the situation.

Consider setting up some time with our office. We can look at your complete financial picture, help you to understand it, and help you to develop a plan to make your “financial mess” work for you.

Reason #4:  My Social Security will take care of me

The bottom line is this – there’s a chance Social Security may not be available when you retire, and even presuming it is, it may not be enough to provide your ideal retirement income. If you’re planning to retire on Social Security alone, I would advise you to create a back-up plan at the very least.  

Reason #3:  Between my savings and my 401(k), I’ll be fine

Saving for retirement without an income distribution plan can be a mistake.

How will you use that money once you have it? And while you may think you’ll have everything you’re going to need, have you considered inflation? Taxes?

And furthermore, some people are living past 90. Will your assets last that long? If you outlive your income, what then?

It’s a good idea to look ahead and plan lifelong income.

Reason #2:  I don’t want to think about it

Many people procrastinate simply because the thought of discussing financial matters (or growing old) is unappealing and can be overwhelming. I can certainly understand that.

But if you sit down now and put a firm plan in motion, you may not have to think about it again for quite some time.

Reason #1:  I don’t know how

While it is possible to do everything on your own, that generally involves a great deal of research and a huge time commitment.

If you’re putting off retirement planning because you don’t know how, I’m here to help and would love to speak with you about a plan that makes sense to you and your retirement goals.

Here at West Advisory Group, we’ve developed a checklist to measure your retirement readiness. This checklist is a great first step to find out where you stand with your retirement goals and help you to narrow down where you need help.

You can download your Retirement Checklist by entering in your info below.

A Personalized Plan for Retirement

If you feel you need to prepare more for the future or reexamine your existing strategy, I suggest we schedule a phone meeting to discuss a plan that works for you. 

One of my favorite meetings to have with clients is partnering together to make actionable plans for their retirement goals. Even if you already have a plan in place, it’s always important to check in and ensure you’re on track.

If you have questions about specific details and how to best navigate your goals in retirement, I would love to answer them for you and help you create a plan to achieve them. Give our office a call and we can schedule some time together.