Planning for retirement is a lot like improving your diet or exercising. A lot of people say it’s their top priority. But when it comes down to it, most struggle with how to get started – and how to keep going.
A 2024 study revealed that three-quarters (76%) of Americans believe that saving for retirement is important. However, only 39% of respondents have a plan in place that will allow them to retire when they want to.1
Do you fall in the gap between knowing its important and having a plan in place? If so, you might benefit from these mental preparedness steps to help you take the next step.
Why getting started can be so challenging
It’s common to put off retirement planning, thinking, “I don’t have the time or money,” “I’m too young or too old to start planning,” “I don’t know where to start” or “I’ll just save more next year.”
Retirement planning can be challenging because it touches on so many aspects of your life and future. It may bring up uncertainties as to the state of your personal finances or concerns about your long-term health. It can mean delving into topics you’ve never considered before, like setting up power of attorney or understanding how life insurance works.
We’ve put together some steps to help overcome the mental obstacles so you can get in the right mindset for retirement planning.
Five steps to get in the retirement planning mindset
- Envision the future – Write down a vision of your life in retirement. When do you want to retire from your job? Where would you like to live? How will you spend your time? Define a positive vision of the future that you are excited to achieve.
- Think long term – Your retirement may be years away, or just around the corner. Wherever you are, make it a habit to think beyond your immediate financial needs and wants. There may be purchases you are willing to avoid now to bring your retirement dreams closer.
- Make financial discipline easier – Small steps are easier for most people than big leaps. Find small ways to save regularly, including budgeting, cutting unnecessary expenses and ‘paying yourself first’ through a savings account.
- Expect to adapt and change – Review your retirement plan occasionally to make sure it still makes sense. Life happens, and your circumstances and goals may change. Your financial plan can (and should!) adapt with you.
- Seek advice – A financial professional can help you understand your options, including things like annuities or life insurance that can help contribute to a comfortable retirement.
Start planning for retirement with an F&G financial professional today.
