Research about retirement by financial planners have identified variables that can improve retirement outcomes. Moreover there were biological gender differences between with satisfaction in retirement.
Retirement can be a difficult consideration when a person is young as it requires delayed gratification and long term planning. Having someone help you with thinking about the plan and its benefits can increase motivation. It may also take creative thoughts around investments to consider how to save for retirement and how much money you will need. Everyone is different. Additionally there are different views about retirement. Some prefer to reduce work, some may decide to pursue their passion, others may choose volunteer work they always wanted to do and then there is the caring role or focusing on leisure activities only. However, while considering what retirement will look like for you, the study found improvements to be social network, health, finances, participation in recreational activities, hobbies, social resources and status. The study identified that only 10% were satisfied in retirement while 51% were not. Variables explored in the study was short-term and long-term financial horizon, which means the time during retirement. If a person has short-term financial horizon they are more likely to rent and have debts, compared to those thinking about long-term and prepared for retirement. Most people in the study (18%) had a financial planning horizon for a few months compared to 13% of people who had a few years. Moreover, the longer a person is in retirement and their finances decreases, their ability to participate in recreational activities also decrease. However, if they had a long-term financial horizon they are more likely to enjoy recreational activities for many more years. Another study identified the depression effected the participant's financial planning horizon. For example, a depressed person had a shorter financial planning horizon, compared to those who were not depressed. People who are depressed feel a sense of hopelessness and their decision making includes information bias that leans to information being viewed as negative. Long-term financial planning increased satisfaction in retirement. While the study has limitations such as questions asked, it is an important consideration when thinking about what life will look like when you retire as thinking about long term retirement has its benefits to the quality of life you will have when you retire. Moreover, it is also important to make sure your decisions are not influenced by your mental illness. If it is, then having someone else help you decide and challenge your thinking will improve your retirement planning. Moreover, financial planners considering long-term financial planning will improve their client's satisfaction in retirement.
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AuthorArticles about mental health, money and behavior Archives
February 2024
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