Here’s the reality. Retirement expectations for most people are out of whack.
According to a Nationwide Insurance Company survey of adults age fifty and older, many believe they’ll get more from their retirement savings and from Social Security than is actually possible.
That’s a problem for investment advisors like me, who have enough challenges working with many of the unrealistic expectations of clients heading into retirement. It’s an uphill battle trying to snap some back to reality. In addition, pre-retirees believe that they’ll spend the bulk of their post-career income on housing and food. But, here’s the reality – current retirees spend most of their money on health care.
Now, if that’s not enough to produce anxiety as we close out this year, neuroscience research sponsored by ThinkALike Laboratories measured the electrical activity of people’s brains recently while evaluating different financial scenarios in their life. They found that facing financial decisions actually impacts brain function.
In fact, eight of ten Americans are anxious about their finances and that stress can lead to bad financial choices. Here’s some good news though, it also found getting advice alleviated stress and improved brain function, making it easier to make good decisions about saving, spending and tackling debt.
So, keep your sanity. Don’t go it, alone.
