Top 5 Reasons Why Workers Have More Panic Attacks Than Retirement Plans
Written by
Caitlyn Moorhead
Edited by
Gary Dudak
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Unless you invested in property in the 1980s like some sort of young real estate prodigy, you may have some reservations — or even fears — about retirement. Getting bombarded with financial advice about saving more and investing wiser, all while you have your pockets turned inside out to see if you have enough for a sandwich, doesn’t help bolster confidence in your future either.
If you’re considering putting off retirement, for practicality or necessity, you’re far from the only one. Various reports show that roughly 80% of American workers have considered delaying retirement for financial reasons, and the majority is more scared of going broke in retirement than they are of death. That’s pretty grim.
So why exactly are so many workers afraid to retire? Here are the top five reasons workers today are downright panicked about the prospect of retiring.
No. 5: They’re Afraid They’re Going To Live TOO Long
The rising cost of long-term care, or healthcare in general, can leave many people shaking in their boots about whether or not their nest egg will cover medical expenses. (Although, they should really stop shaking as they could twist an ankle, and that’s just another deductible they’ll have to meet.)
Even if you have a lot of money stored away, it’s hard to determine if it will cover you for the rest of your life, and how long that will be. So many people are afraid to retire simply because of how much their healthcare will cost.
According to Fidelity, the average 65-year-old couple will spend $12,200 during just their first year of retirement. With figures like that, medical costs alone could wipe out their savings within years — maybe even less.
No. 4: They Lack a Solid Retirement Fund
Unfortunately, investment strategy is not taught in schools as often as square dancing or how to play “Hot Cross Buns” on the recorder. This leaves many folks with a lack of financial literacy, and all alone to figure out important life stuff like saving for retirement.
When you don’t have a ton to invest in the first place, it’s tough to essentially gamble on funds that don’t turn out to be lucrative, which leaves many to fear they’ll make one bad investment decision and lose all their money.
No. 3: They Don’t Want To Leave Their Peeps
For many of you approaching retirement age, the thought of never seeing your workplace again is a dream scenario. However, if you are no longer interacting with your friends and coworkers regularly, you might feel like you’ve lost connection with the outside world.
This can cause a feeling of disconnect so severe that you would even miss when Ted told terrible dad jokes or Gail would warm up her seafood leftovers in the break room. Truly, it can be hard to look forward to retirement when you are lucky enough to enjoy your coworkers and the conversations you have with them. Even Ted and Gail somehow keep you grounded.
No. 2: They Can’t Just Sit Back and Relax
Many people derive a sense of purpose from their work and their routine. With retirement, the life associated with working is suddenly taken away. Who are you if you can’t give your business card to someone that has the answers to that question?
Many American workers feel like they don’t have a lot of hobbies or friendships outside of work, and will struggle to find that same sense of purpose they found when they were working. However, traveling for fun and relaxing for free could be your new lifestyle choice, and that doesn’t sound so bad.
No. 1: A Tight Budget Isn’t Tight at All
And now, the number one reason why workers have more panic attacks than retirement plans is … they won’t be able to live their best life on the retirement budget they were able to scrounge together. Or, as Victoria Ratliff on “The White Lotus” put it: “I just don’t think at this age, I’m meant to live an uncomfortable life.”
Most likely, your income will drop in retirement, which is scary when you’ve become accustomed to a certain lifestyle. Outside of caviar wishes and champagne dreams, having to adjust to a way of living that doesn’t afford you the same luxuries that you’re used to can be very jarring, especially later in life.
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