Overcoming Obstacles to Saving for Retirement

We’ve all said it, “tomorrow I’ll get to that”, or “maybe next week or next month when I’m not so busy and have a little extra cash”, but time passes on by and we never get to that one thing we’ve been avoiding – saving for our retirement. Here are some of the obstacles to saving that we may identify with:

• Procrastinating – delaying savings or putting savings off for another time. Check√
• Poor Spending Habits – includes spending on unnecessary items; impulse buying and self-indulgent lifestyles. Check√
• Culture of Dependency – Being overly dependent on others for everything. Check√
• Lack of financial literacy – spending on liabilities or items that decrease in value over time; not knowing how to make your money grow or work for you. Check√

Here are some ways by which you can overcome these obstacles:

Imagine Yourself at 60

Look closely. Do you see the wrinkles? This experiment is theoretically supposed to help us save more. In a recent New York University study (November, 2011), students who saw their own age-enhanced images – versus their current image — were more likely to save for retirement.

Consult With Your Older Friends and Family

If you don’t want to take our word for it, ask your older relatives and friends.  Many would tell you to start saving earlier and save more for retirement. The fact is few baby boomers are adequately prepared to support themselves financially in retirement.  Hearing this from, your grandfather or your favourite aunt may be more sobering than reading it from an article.

Women: You Need to Catch Up

When it comes to retirement savings women are not as prepared as men. According to a study from Aon Hewitt – a solutions expert in human resources – men contribute more to a retirement account than women. Women also reported lower current retirement savings than their male counterparts. This in part has to do with the fact that women still earn less than men and are more likely to take time off from their careers. But when you consider the fact that women live longer and have a close to 90 percent chance of being financially independent at some point in their lives, saving aggressively for retirement is essential – perhaps even more so than it is for men.

Don’t Fear Technology, Embrace It

Online planning tools and financial education will help you estimate how much you’ll need to save for your retirement. The more you use online tools and calculate your savings and investments, the more confident you will feel about achieving your retirement goals. 

 To ensure you achieve financial freedom – make your money grow – Invest your savings in money making assets. Make your money work for you. Ensure you consult a certified financial adviser and ensure that your broker/dealer is registered with the TTSEC.

Remember! Save to invest – keep more of the money you earn and make more of the money you keep.

The TTSEC is not an investment adviser nor is it a brokerage house. This article is intended solely to provide you with the information you need to make sound investment decisions and to ensure that you are familiar with and understand your rights and responsibilities as a consumer of financial services.