As our population ages, the question of how pre-retirees are preparing for retirement becomes more pressing. Unfortunately, the outlook isn’t great.

Joel Johnson, CFP® joins Retire Wiser with NBC Connecticut to shed light on this issue. While individuals within five years of retirement seem to manage fairly well, challenges arise for those who view retirement as a distant concept. A significant concern is the lack of awareness, with 48% of people uncertain about the amount they’ll need for retirement. Many cling to vague ideas, like needing a million dollars, without solid planning, which can lead to future complications.

Conquering Retirement Fears

One major fear among Americans aged 55 and above is the risk of having insufficient income during retirement. Over 40% worry about running out of money. Instead of succumbing to anxiety, they should strive for clarity: understanding whether they are financially short and need to make adjustments or if they are on track. A thorough financial analysis can provide this much-needed reassurance.

Bridging the Retirement Gap

There is a noticeable gap between desired retirement spending and actual savings. This gap serves as a wake-up call, especially for those nearing retirement. A robust financial plan is crucial, either confirming that one’s expectations are realistic or indicating the need to adjust them. Understanding and preparation are key to achieving a secure retirement.

With these insights, it’s clear that a proactive approach is essential for navigating the road to retirement. By addressing these challenges head-on, pre-retirees can work towards a future where they can enjoy the financial freedom and peace of mind they deserve.