Older adults can have financial fears
Halloween is coming up. Americans like to celebrate this time by having fun with fear and phobias.
Ghosts, goblins, and witches provide entertainment for all ages. But the reality is, they face real concerns as adults. No matter how much older and wiser you become, 57% of those surveyed in 2018 reported being afraid of running out of money.
For older Americans, not being able to afford retirement is their number one fear.
Many older adults have anxieties about outliving their retirement savings. Compared to their parents, seniors today have more lively lifestyles than previous generations. Older Americans today want to travel, have larger, more updated homes, and generally be more involved in activities. What can you do to help your money last? Take a look at some of the specific fears.
I fear my retirement savings will support my grown children indefinitely.
Many college-educated grown children return home to their parents’ houses to live post-college. While most parents have good intentions, adult children use up our savings more than you realize. They are consuming groceries, electricity, and water. Do not let your grown children push you into financial insecurity.
Enact boundaries and limitations to help ease them out of the nest and into the real world. For example, give them a timeline to find an apartment or to pay their bills. Helping them be successful adults while rescuing your retirement savings is a win-win for everyone.
I fear unforeseen circumstances will deplete my savings.
It is essential to have an emergency fund. Whether you experience a cracked foundation, major flood event, health crisis, or loss of a major appliance, an emergency fund can help bridge the gap and prevent you from dipping into your retirement savings.
The general rule of thumb is to have three to six months of savings in your emergency fund. If you do not have an emergency fund, take time to put a little money away each month.
Saving just $20 a week will provide you $1,000 within a year.
Additionally, take this time to review your insurance coverage to ensure there are not any surprises if a catastrophic event does occur.
I fear I will lose all of my retirement savings.
It only takes one scary day for the stock market or one terrifying headline to worry us into thinking we might lose the savings we have worked so hard to grow. To stay financially secure, talk to your financial advisor about your portfolio and ensure it is diversified across asset classes, the sizes of companies you are invested in, and national and international investments.
Additionally, to keep your savings accounted for daily, make sure you are following a budget. As you track your expenses, make any adjustments necessary, so you are not spending more than you bring in each month. Be realistic in your spending. Can you eat out less? Curtail your travel? Staying within your budget will help your retirement savings last longer.
While most adults face some financial phobias, you can look for ways to overcome any fears. Take the necessary steps to shore up your savings and tweak your behaviors to help your retirement savings outlast you.