🔥 Read this trending post from Investopedia | Expert Financial Advice and Markets News 📖
📂 Category: Lifestyle Advice,Wealth,Personal Finance
📌 Here’s what you’ll learn:
Key takeaways
- According to a new study released by the Transamerica Center for Retirement Studies, not even half (42%) of people in the middle class say financial planning is one of their top priorities.
- This is lower than those who say enjoying life (63%) and being healthy and fit (61%) are top priorities.
- You can do all three things: enjoy life, stay healthy, and plan for your financial future. It takes a little work.
Postpone saving for retirement
Planning your financial future is difficult. Even when you have goals and a savings plan in place, life can get in the way. You may have an emergency that means you can’t contribute to your retirement accounts for a short time, or you may even need to take out a loan from your 401(k). Then there are the daily distractions that keep you from prioritizing saving for retirement and other big goals — your hobbies, social events, and more. Like many Americans, you may simply want to spend your money on things that bring you happiness here and now, and put off the future.
People really care about health and happiness
The 25th Annual Retirement Across America Survey found that more Americans are prioritizing their health and happiness over planning for their financial future.
The survey found that 63% of middle-class Americans say enjoying life is a top priority, 61% say being healthy and fit is a top priority, and not even half (42%) say financial planning is a top priority.
Quick fact
74% of middle-class adults aged 70 or older say their time and energy go toward enjoying life, while only 53% of people in their 20s report enjoying life as a primary focus.
People in their 30s and 50s are more likely than average to prioritize their financial future, according to the survey: 50% and 49%, compared to 42%, respectively.
Although the majority of middle-class adults are primarily focused on their health and happiness (rather than their future), some have retirement savings and a plan for the future.
However, according to the survey, only 25% of middle-class adults have a written retirement plan, and 49% have an unwritten plan. And 26% have no plan at all.
| The most important priorities of the middle class | |
|---|---|
| Life priority | Percentage of middle class who cited this as a priority |
| Enjoy life | 63% |
| Fitness and health | 61% |
| family | 42% |
| Financial planning for the future | 42% |
| Professional life | 25% |
| Live a more sustainable life | 25% |
| Give back to the community | 22% |
| Lifelong learning | 21% |
| Caregiving | 15% |
Can you save for retirement while prioritizing health and happiness?
The good news is that there are many ways you can set yourself up for financial security in retirement now, whether you’ve already created a savings plan or don’t have enough time to step away from the demands of life to learn how to prepare for retirement.
Whether you’re someone who thrives on your gym membership or feels refreshed by beach vacations, you can now enjoy the fun parts of life while also preparing yourself for a secure retirement.
Here are some ideas.
- Automate savings By setting up monthly or weekly automatic transfers to the savings account you set up to achieve your big goal – retirement or otherwise. With automation, you don’t have to think about saving. It’s done for you.
- Use apps To help you save and plan for retirement. These apps can set you up for automatic contributions to a Roth IRA, for example, and help you create a long-term plan for your savings. There is also a retirement planner for Android.
- Spend a few minutes learning about smart money habits. Whether you’re waiting for a group fitness class to start or you’re relaxing in front of the pool, take a few minutes to boost your financial knowledge.
- Create an emergency fund. Experts suggest saving three to six months of your expenses in this fund.
- Instead of waiting to save, Pay yourself first.
- Set up a consultation with a financial planner. They can help you ensure that you prepare for your future while enjoying the present.
⚡ Share your opinion below!
#️⃣ #people #prioritize #financial #future #agree
