homepage logo

Layin’ It on the Line: How retirement fears are affecting investor confidence, preparedness

By Lyle Boss - Special to the Standard-Examiner | May 3, 2023

Photo supplied

Lyle Boss

Retirement is often portrayed as the golden years, a time of relaxation, travel and enjoying the fruits of a lifetime of hard work. However, retirement can be uncertain and fearful for many individuals. According to a recent survey, nearly half of investors check their retirement balance three times a week, highlighting the anxiety many individuals feel about their retirement savings. The study also found that retirement fears weigh more heavily on men than women, with men expressing lower levels of preparedness and confidence about their financial future.

This disparity between men and women regarding retirement preparedness is concerning. Women already face a unique set of challenges regarding retirement, including the gender pay gap and the fact that women tend to take on more caregiving responsibilities, leading to fewer years in the workforce and, subsequently, fewer savings. Men also express lower levels of preparedness and confidence regarding their retirement, highlighting the need for greater education and support around retirement planning.

One solution to address retirement fears is to increase financial literacy among individuals. Many individuals need help understanding financial concepts like investing, budgeting and saving. This lack of knowledge may lead to poor financial decisions and a lack of confidence in retirement planning. Individuals may become more confident and knowledgeable about retirement planning options by increasing financial literacy through workshops, online courses and other educational resources.

Another solution is to provide access to licensed and authorized advisors who offer retirement planning services. Many individuals do not seek professional help regarding retirement planning due to a lack of awareness or the perception that it is too expensive. However, financial advisors may provide valuable guidance and support regarding retirement planning, helping individuals understand their options and create a plan that aligns with their goals and financial situation.

Employers may also play a role in addressing retirement fears. Many employers offer retirement savings plans, such as 401(k) plans, but only some provide education and support around these plans. By offering financial education and resources to employees, employers may help to alleviate retirement fears and increase overall financial wellness among their workforce. This may also positively impact employee retention and engagement, as employees feel more supported and valued by their employer.

In addition to increasing financial literacy, providing access to financial advisors and offering employer-based retirement planning resources, individuals may improve their retirement preparedness. One key strategy is to start saving early and consistently. The earlier individuals start saving for retirement, the more time their money has to grow and compound. Even small contributions can make a big difference over time.

Another strategy is to create a budget and stick to it. By understanding expenses and income, individuals can make more informed decisions about allocating their money, including how much to save for retirement. Reducing unnecessary expenses and increasing income through additional employment or entrepreneurship may also help individuals to save more for retirement.

Finally, individuals need to review and adjust their retirement plans as needed regularly. Life circumstances and financial situations may change, and individuals must stay informed and adaptable. Regularly reviewing retirement savings and investment strategies, and adjusting as needed, can help individuals to stay on track and achieve their retirement goals.

Retirement fears are a common concern for many individuals, particularly men, who express lower levels of preparedness and confidence than women. However, individuals may overcome these fears and achieve a more secure financial future by increasing financial literacy, accessing financial advisors and retirement planning resources, and taking proactive steps to improve retirement preparedness.

Don’t let financial jargon and confusion prevent you from reaching your goals. A qualified financial advisor may provide personalized advice and create a customized plan that aligns with your unique financial situation and goals.

  • Close to half of investors check their balance three times a week or more. This habit highlights the anxiety individuals have when managing their investments.
  • Men are more likely to admit their retirement fears than women.
  • Working to increase levels of financial literacy across the board will help alleviate these issues.
  • Preparedness and proper planning will also help increase investors’ confidence and assuage retirement fears.

Lyle Boss, a native Utahn, is a member of Syndicated Columnists, a national organization committed to a fully transparent approach to money management. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.


Join thousands already receiving our daily newsletter.

I'm interested in (please check all that apply)