“Whatever You Do, Talk to Someone”

In an April 2019 study conducted by TransAmerica Center for Retirement Studies, the comfort level of retirement conversations across three generations was surveyed.  What was found is that retirement is a family matter that calls for important conversations. However, just 16 percent of workers “frequently” discuss saving, investing, and planning for retirement with family and close friends, while 56 percent “occasionally” discuss it, and 28 percent “never” discuss it. Across three generations, Millennials workers (21 percent) are most likely to “frequently” discuss savings, investing, and planning for retirement with family and friends. In contrast, almost a third of Generation X (31 percent) and Baby Boomers (32 percent) “never” discuss it.

Start with your Spouse

Among workers who are married or living with a partner, 57 percent say their spouse or partner is saving in a retirement plan and 67 percent are familiar with their spouse’s or partner’s savings, yet only 30 percent are “very familiar.” Level of familiarity of their spouse or partner’s plan increases with age, with Baby Boomers (70 percent) being the most familiar, followed by Generation X (67 percent) and Millennials (62 percent).  The takeaway here is that finances and savings between spouses should be an open book, and if we are going to start talking with someone about our situation, then it should start with those closest to us.

Conversations Don’t Have to Involve Numbers

If you don’t feel comfortable talking about specific values or numbers with someone, then at least have a conversation with someone you trust about the idea of retirement and setting some goals to get there.  A lot can be shared and learned about retirement simply by knowing why money is important to you, and certain steps you can take to achieve the retirement you are looking for. 

Rely on Professionals That you Trust

The same study showed that just 38% of those workers saving and investing for retirement use the services of a professional financial advisor.  It is interesting that when we need tax assistance or help in buying a home, we have no problems using the services of a professional.  However, when it comes to saving and investing for retirement, we tend to think a Do It Yourself approach will suffice.  It’s important to find a financial professional that you trust and who’s services align with your needs. 

If you, or someone you know is interested in speaking with a professional about their retirement goals, then reach out to one of our advisors today!

September 20th, 2019