Financial Planning: Important Now More Than Ever
When should one start thinking about their financial future? When they are nearing retirement, somewhere around 60 years old? How about around 50? Maybe 40? There is no definitive age one should begin thinking about financial planning, but there is the old adage: “Better sooner than later”. And for many Americans, it is becoming one that should be followed.
According to a new survey courtesy of Allianz Life, “nearly two-thirds (63%) of non-retirees said they fear running out of money more than death, versus less than half (46%) of retired respondents”. What could be causing this uncertainty in pre-retirees. Well unfortunately, there are lots of potential causes. The pandemic is one of them, as it caused economies to shut down affecting the income of households across America. Even though the stimulus payments provided some relief, a large portion of Americans chose to spend the money rather than save it. The pandemic, coupled with the raging inflation Americans are experiencing at their grocery store, gas station, and electric bill, probably has many re-evaluating their potential retirement plans. For others, it’s possible they might be starting to think about them.
In reality, the fact that two-thirds of non-retirees in this poll feared running out of money before dying shows a certain lack of preparedness in finance many American households face. When the country is going smoothly, and paycheck increases are surpassing that of inflation, everything seems great and the thought of running out of money before death seems absurd. However, after two years of crushing negative effects on the economy, people have begun to think about the financial future and in doing so, have begun to fear the worst. That is where a financial plan can come in handy. Financial advisors can help one plan for retirement whether one is 10, 20, or even 30 years from retirement. Recent polls are showing are large number of the population panicking over whether they will have enough money to retire and live to a ripe-old age—if you are one of them, it might be time to start thinking about a financial plan.
