Retirement Age Crisis: A Problem with Financial Decisions

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 Financial Decision for RetirementFinancial decision-making is a struggle everyone goes through in life — and it never is a one-time deal. New issues and planning for future security calls for a steady stream of decisions that, hopefully, will pay off. In fact, a recent report from Hearts & Wallets, a data and consulting firm, says that it’s one of the biggest anxieties that Americans experience when approaching retirement.

Researchers conducted a survey on 5,216 adults from various economic backgrounds and found that the three biggest financial burdens per the respondents were retirement planning, estate planning, and making investment decisions.

The Pressure of Income during Retirement Planning

A common complaint of respondents who cited planning for retirement as a difficult financial hurdle to overcome mentioned the flawed system of retirement planning solutions in the country. Laura Varas, founder and CEO of Hearts & Wallets, says retirement planning mostly focuses on income rather than addressing the emotional complexities of transitioning into retirement. This makes it difficult for retirees-to-be to make informed decisions.

Estate Planning is an Uncomfortable Topic for Retirees

Of the respondents from the study, 26% of them expressed difficulty with estate planning. Despite the figure, only 8% of them sought help for last wills and asset protection in the last year. Most the retirees and pre-retirees admitted to feeling uncomfortable about discussing the topic of estate planning. Consulting an estate planning lawyer, on the other hand, could take the discomfort out of the process and inform adults of the importance of securing their assets.

Confusion among Pre-Retirees on Appropriate Investments

Choosing the right investments is another stumbling block for pre-retirement adults and the current low-interest rate environment may have had an impact on this issue. Some of the respondents end up biting off more than they can chew through long-term bonds and closing disclosures. In hopes of getting higher returns, they turn to long-term bonds but fall victim to the constant fluctuation of interest rates. Thus, most adults feel confused on what to invest in.

Making decisions have always been difficult, especially if it involves finances. Seeking the help of a paid adviser could, therefore, pay off, especially when faced with retirement planning, estate planning, and making investment decisions.