You’ve been saving for your retirement for years – but now that you’ve arrived at retirement age you find it hard to spend your savings, not knowing what the future will bring.
Does that sound like your situation? If so, you’re not alone. A new study found that as people age they become more pessimistic about their finances and the economy. In turn, this increased pessimism leads to decreased spending – leading retirees to fall short of living their dream retirement.
What causes this increased pessimism? Researchers aren’t exactly sure but point to several potential factors. The report – available via United Income – suggests,
Older adults today watch more television than older adults did in the 1970s and watch much more than this generation of younger adults, which may mean they are more exposed to the intraday and inter-week turbulence of markets. Another reason for this growing generation optimism gap could be a growing inability to relate to the primary drivers of growth as we age – since much of the marketing in the U.S. economy is geared toward younger audiences.
How do you counteract this pessimism? Start by having a conversation with your Waddell & Reed advisor. He or she can help you assess your risk tolerance and formulate a budget based on your assets and income. You’ve saved and invested for your retirement for a long time – make sure you’re living the retirement you want.
Need more insight? Let us be your guide.
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This information is provided for educational purposes only and may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to assist in understanding the issues discussed. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Waddell & Reed does not provide tax or legal advice. Please consult with the appropriate professional regarding your personal situation prior to making any financial related decisions.