Investor Minute
Don’t Make the Same Mistakes We Did: Advice From Retirees Looking Back
In his song “Letter to Me,” country singer Brad Paisley gives the advice to his teenage self that might have made his subsequent life a little easier.
Some of his instructors are very specific: “At the stop sign at Thomlinson and 8th, always stop completely, don’t just tap your brakes.”
Some advice is relational: “Each and every time you have a fight, just assume you’re wrong and dad is right.”
And some is simply directions on what to prioritize: “I wish you’d studied Spanish. I wish you’d take a typing class. I wish you wouldn’t worry . . .”
The reason he couldn’t see these things at the time, Paisley explains, is that when you’re seventeen, your plans for the future only go as far as Friday night. But whether you realize it or not, you’re going to live the rest of your life with the consequences of your actions.
In the same way, sometimes it’s hard to think through your retirement plans, when A) it’s a phase of life you’ve never experienced before, and B) it seems a long way off. That’s why it’s good to listen to the advice of people who have been retired for a while—especially when you still have time to act on it.
A survey of retirees conducted by OnePoll in partnership with ClearMatch Medicare, found that on average they had to stop working more than a year and a half earlier than they had planned. As a result, 44% believed that the amount they saved for retirement was not enough.
When asked to share the most common assumptions about retirement that they now know are not true, 57% cited the belief that Social Security will meet your living expenses. Another piece of misinformation identified by 51% of respondents was that Medicare will cover all your healthcare costs.
When asked to share their biggest challenges in retirement, more than half said it was accepting changes to their health as they age.
Two big takeaways from the survey are:
Build flexibility into your retirement plan. Don’t assume you can stay at your job as long as you want.
Prioritize your health. Don’t put off the lifestyle changes that can help you have a more active retirement.
You can take steps toward being ready for the unexpected around the timing of your retirement by planning now with your trusted advisor.
And to help ensure you enter your post-career years with the best ability to enjoy them, visit with your healthcare professional. Make an appointment for a free call with me by clicking this link.