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Don’t be an April Fool…Plan for Retirement

If you have reached adulthood then you are already aware that plans go awry. Your plans for one day can be derailed so it goes without saying that your plans for retirement may not play out the way you think they will. Still, many of us remain a little too optimistic that we’ll be able to retire when and how we want.

In “3 April Fool’s Jokes for Your Retirement Plan,” TheStreet.com observes “There are many disparities between the expectations of a worker aged 50+ and the reality.” Rather than be a April fool, consider how you can plan for retirement in such a way that you are ready even if your well-laid plans don’t come to fruition as you thought they would.

The article examined “The Current state of Retirement: Pre-Retiree Expectations and Retiree Realities,”  which found that only 16% of respondents retired early due to being financially able to retire. Even though people were able to select more than one option in this survey, it still means that an overwhelming majority of the people asked retired for reasons other than being ready financially. The idea that we will all be able to retire when we’re ready is one of the mistaken notions discussed, two more are–

I’ll work in retirement.

The survey found: “The disparity between 54% of pre-retirees expecting to still be working and only 5% of retirees actually working is a huge cause for alarm for financial planners.”

You may not work in retirement because you are unable. It is also possible that you may not be able to find employment.

I’m going to wait until full retirement age to start getting my Social Security benefits.

Ideally, you would wait until full retirement age and that way receive more. However, many people reach 62 and find that life circumstances dictate that they apply for those benefits earlier than planned.

Rather than just believing that you will be able to retire as you wish, work with a Fee-Only financial planner to ensure that you are prepared.