The idea of retirement sounds exciting for the individuals as it is time for them to explore their other facet, but most of the time, these individuals skip to keep their finances in place for lack of understanding of the retirement needs in their lives. Resultantly, most of the individuals hit a rough patch during their ageing years. Bringing out this point, the author of ‘Grow a Pair’, Larry Winget discussed the impact of insufficient retirement planning during an interview on Fox Business.
No Clue Of Cost
Winget said: ” First of all, we are a self-indulgent society, who always wants to take care of the immediate instead of think about the future. So very few people are willing to sacrifice their current lives in favor saving for retirement.”
Also, Winget added that the real problem is that most people do not have clue about how much money retirement will cost them. For those people, Winget suggests that there are several calculators available online that could give a reasonable idea about the retirement corpus they might need in future. Winget also highlighted that while saving for retirement, people can face lots of unexpected events like the possibility of kids moving with you.
Addressing the dilemma of those who have already retired and are looking for ways to cope up with their retirement, Winget suggests that irrespective of how huge the current savings are, retired individuals would need to adjust to their lifestyle habits in order to maintain their living. Winget suggests, “You probably have to downsize, you have to eat out a whole lot less often, you probably have to drive a smaller car, cut back on your vacations, you really need to look at how you are spending your money.” At the same time, Winget stressed on the importance of an open and honest communication, when it comes to finances. He said that talking and disclosing details of finances among couples would do away with the unnecessary imbalances in spending and will help to keep the retirees in synchronization.