couple open wallet









The National Institute on Retirement Security (NIRS) recently released a public opinion research report that found that an overwhelming majority of Americans – 86 percent – believe the nation faces a retirement crisis. Some of the findings are:

  1. Some 86% of respondents agree that the nation faces a retirement crisis.
  1. Three in four Americans remain highly anxious about their retirement outlook even after the economy has begun to show signs of recovery.
  1. Even though Americans feel slightly less stressed about their retirement prospects than they did a couple of years ago, support for steady and reliable retirement income from a pension is high and growing. 67 percent of Americans polled said they would be willing to take less in pay increases in exchange for a guaranteed income in retirement.
  1. Americans see retirement benefits as a job feature that is almost as important as salary.

 The NIRS poll provides meaningful insight into the attitudes of many Americans. My experience tells me that what many want, guaranteed income in retirement, will not be forthcoming from the government whether one believes it should or not. So, what can we do individually to increase our odds of an enjoyable retirement in terms of financial ability?

The first and clearest action item is noted in item #3 above. Sixty-seven percent of polled individuals were willing to take less in salary in order to have a more secure retirement. Well, we can do that for ourselves. It is called spend less and save more. It has the same net effect with the exception that the future income is not guaranteed by the government. Moreover, as I wrote above, in my opinion that is a non-starter. So, creating a stronger income base for yourself is probably the only thing you can do.

Think about your current income. There are only five things you can do with current income. Yes, only five things. You can, or should I say, have to, pay taxes. Second you have to pay debts. The first two aren’t  voluntary. Third, you have to decide what you will do about “giving back.”  And the fourth is “lifestyle” spending. What always ends up being the last and fifth thing is what do we do with current income? Typically, the answer is save for long-range objectives, which includes retirement as well as college education for children and other lifestyle desires.

What do we typically do? Usually, we spend on current lifestyle and don’t save for long-range objectives. When you see that there are only five things to do with current income, it is quite simple to see what to do. It just isn’t as easy to implement it because we have to say, “no” to some of our current desires in order to secure future long-range objectives. Current lifestyle desires cannot rule all of our decisions if we are to make good use of current income toward long-range goals.

The solution for many Americans who are concerned about their retirement security is to live a little more simply and save better.

By Charles L. Stanley CFP® ChFC® AIF®

about the author: Charles L. Stanley CFP®, CHFC® & CKA®

CharlesStanley640x640Charles L. Stanley CFP®, CHFC® & AIF® is a CERTIFIED FINANCIAL PLANNER™ professional and a Chartered Financial Consultant, and he holds the Accredited Investment Fiduciary® designation. For more than 20 years, Charles has served retired physicians, business owners, corporate executives, retirees, and widows, helping them with their estate planning, tax strategies, risk management, investment selection, business succession, and retirement planning.

Charles is a co-author of T.A.S.K. – The Trusted Advisors Survival Kit, published by LexisNexis and is the founder and editor of Capital Markets Magazine: Investor Education for Main Street America. He recently published Forewarned is Forearmed: How to Make an Annuity Purchase (or not) You Will Never Regret. Additionally, he has been quoted or published in the Journal of Financial Planning, San Diego Union Tribune, San Diego Daily Transcript, American Funeral Director Magazine, Canadian Funeral Director Magazine, The Bottom Line – Independent Voice for Canada’s Accounting and Financial Professionals, Financial AdvisorPro, The Family Business Advisor, and Christian Businessman Magazine and was a contributing author to How to Manage a Million Dollars or Less. He also hosted Senior Money, a radio talk show heard on KCEO AM 1000 and he has appeared as an expert witness in both NASD arbitration and San Diego Superior Court.

Learn more and/or Contact Charles

Continue Reading

Other articles filed under LA/OC CFP Team Posts

The Intrapreneur’s Wealth-Building Toolkit

July 17, 2019 - That’s not a typo in the headline; this blog is directed toward intrapreneurs — folks who hold manager, VP and director positions at public companies. These ambitious leaders often self-select as, but since they work within large organizations, they have...
Continue Reading

Your Sequential Investing Hierarchy: First Things First

June 12, 2019 - As I’ve noted in a previous blog, I like to break down where money goes into four buckets: Live, Give, Owe and Grow. Today, I’m going to expand on that concept by introducing the five sub-categories to the Grow bucket...
Continue Reading

Start With the End in Mind

May 14, 2019 - The younger you are, the less you’re likely able — or willing — to think about what your retirement might be like. That’s OK, but you probably do know one thing, even if you’re a millennial with years and years...
Continue Reading

Are You Too Paralyzed to Plan?

May 8, 2019 - Analysis paralysis — we’ve all been there at some point. I know I’ve been guilty of it. As a financial advisor, I see it all too often with millennials and Gen Xers when it comes to financial planning. And for...
Continue Reading

Congratulations to John Chapman, WorthPointe’s Newest Partner

April 30, 2019 - John Chapman joined WorthPointe in 2018, to bring our presence to Orange County. Since then, his entrepreneurial drive has helped us expand our reach throughout the region. Initially attracted to our company culture and tailored investment approach, John found a...
Continue Reading

Return to Blog Home