Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Seven Ways to Avoid Retirement Postponement Syndrome


Take these steps to get your financial life in order and save millions.

Editor's Note: Minyanville is excited to introduce our latest contributor, Gary Stern. Gary collaborated on Minority Rules: Turn Your Ethnicity into a Competitive Edge (Harper Collins) and The Trouble with HR (Amacom) and has written for Investor's Business Daily, The Wall Street Journal and New York Observer.

When people don't save and put off thinking about retirement, some financial analysts call it the "retirement postponement syndrome" or RPS. Paula Kennedy, co-author of The True Cost of Happiness: The Real Story Behind Managing Your Money, said some people emulate Scarlett O'Hara who said, "I'll think about it tomorrow." Many Americans fail to put away money, expecting that something magical will happen to boost their savings -- such as being left a boatload of money by their favorite aunt or winning the lottery -- and often find themselves scampering to save as they get older.

Kennedy, who's also a retirement consultant, said many people wake up at age 50 and realize that "Retirement isn't that far away and maybe I need to do something." Many people suffer from RPS because they're too consumed with investing in their child's college education or paying off the mortgage, or they're saddled by credit-card debt.

Consumers who take steps to get their financial life in order can avoid RPS and save millions if they control their spending and begin to save regularly.

What motivated Gail Marks Jarvis, a financial columnist at the Chicago Tribune to write "Saving for Retirement without Living Like a Pauper or Winning the Lottery" was a 2006 Consumer Federation of America and Financial Planning Association survey in which only 10% of people expected to save a million dollars in their lifetime, 11% said they hoped to inherit money, and 21% said their only chance of saving was winning the lottery. Only 55% said saving monthly was the best route to take to a sound retirement.

Postponing saving aggravates the problem. Many Americans find financial planning very complex; the jargon of financial advisors turns them off, so they procrastinate and delay saving. "No one at age 65 has complained that they've saved too much," Kennedy said.

When 401(k)s turn into 201(k)s and plans for retirement vanish, investors can suffer psychological blows. "People feel a sense of remorse or rejection and can lose self-esteem," explained Scott Sarber, a wealth manager with Petersen Hastings in Kennewick, Washington.
< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos