Retirement Planning

The changes in status occasioned by retirement would seem to require some degree of planning and preparation. In most cases, however, any planning is done in a fairly informal manner and does not anticipate all of the problems that may accompany the event and process of retirement. Ideally, planning for retirement should begin 5 to 10 years prior to the actual event, but this is not what usually happens. Furthermore, although a majority of retirees report having made some plans, most are inadequate. For example, among the 572 adults age 30 or over questioned in a national Gallup Poll in 1995, only 31% stated that they had written down a financial plan for their retirement. A majority of the sample said that they were not earning enough money now to save for retirement, and those who had children felt that their children's education had a higher priority than saving for retirement. Only 26% of the sample was designated by the pollsters as "happily prepared" for retirement; 185 were designated as "cautious optimists," 32% as "worriers" or "irresponsibles," and 24% as "woefully unprepared." As shown in Figure 10-8, the individuals who were questioned in this survey were depending much more on personal savings than Social Security or employer pensions for the retirement income, but their personal savings were generally quite low (Moore & Saad, 1995).

Most business and industrial organizations provide some sort of formal retirement-planning programs covering finances, attitudes, and other matters of concern to retirees, but relatively few retirees who are in poor health and/or have low incomes participate in such programs. Most of the participants are in good health, have moderate incomes, and have a higher than average occupational level (Campione, 1988).

The Employees Retirement Income Security Act (ERISA) and the Old-Age Discrimination in Employment Act, combined with employees' concerns over whether the high cost of living would permit them to retire, acted as stimuli for the development of retirement-planning programs in many companies. Most of these programs, however, are unsystematic and seldom go beyond a discussion of pension benefits and other financial matters. Certain companies have taken the more ambitious step of developing their own comprehensive retirement-planning programs or adopting those of the American Management Association, the American Association of Retired Persons, or the National Council on the Aging. These programs include not only financial matters and health-related concerns, but also legal issues, leisure activities, and new vocational pursuits. Sexual behavior, adjustment to changing morals and values, and more mundane matters such as meal prepa-

Personal savings 401k et al Company pension Social Security Part-time work Inheritance

Percentage of People Listing

Figure 10-8 Percent of adults in a national survey anticipating each of six sources of retirement income as a major, minor, or no source. (Based on data from Moore & Saad, 1995.)

Personal savings 401k et al Company pension Social Security Part-time work Inheritance

Percentage of People Listing

Figure 10-8 Percent of adults in a national survey anticipating each of six sources of retirement income as a major, minor, or no source. (Based on data from Moore & Saad, 1995.)

ration are also covered in some retirement-planning workshops. The workshops place greater emphasis on practical matters than on psychological concerns such as stresses within the family and feelings of self-worth, but the latter are also dealt with in some programs. Furthermore, because retirement affects not only the retiree but the whole family, retirees' spouses are also encouraged to participate in the program.

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Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

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