Don't Just Think About Retirement Planning, Act Now

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According to a report from the TransAmerica Center for Retirement Studies Americans are concerned with their retirement, but they’re not actually doing much about it. I urge you and anyone who hasn’t already taken action toward planning for retirement to not wait, get to work now. FEDWeek reports:

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The report, based on polling samples of the baby boom, generation X and millennial generations, found that majorities of all three expect to have a harder time achieving financial security for retirement than their parents’ generation, with the younger two generations agreeing more strongly; and believe they could not save enough for a secure retirement by working until age 65, with the two older generations more strongly holding that view. In addition, about a third overall expect their standard of living to decrease when they retire, with the older two generations believing that more strongly.

That comes at a time when all three generations expect to have longer lives and thus longer periods in retirement than those currently retired, the study noted.

It said that as one strategy to make up for their expected shortfalls, more than half expect to continue working even after retiring. “However, when asked what steps they are taking to help ensure they can continue working, 27 percent of workers say they have not taken any steps.

“Among those who are taking proactive steps, workers most frequently cite that they are staying healthy (48 percent), performing well at their current job (43 percent) and keeping their skills up to date (40 percent). Baby boomers are more likely to cite staying healthy (56 percent) and somewhat more likely to cite performing well at their current job (48 percent) than younger workers. In contrast, millennials are more likely to be networking and meeting new people (23 percent) and going back to school (19 percent) than older workers,” it said.

Further, only about a quarter in each generation have a backup plan in case retirement comes sooner than expected, for example due to health reasons.

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.