Early retirement takes a toll on mental health
Welcome to Retirement Scan, our daily roundup of retirement news your clients may be talking about.
Early retirement could take a toll on clients’ mental health
Achieving financial independence and retiring early appears to be a very attractive option for many clients, however the move can have its downsides, according to an article from MarketWatch. Clients who opt to retire early are likely to experience bouts of anxiety and self-doubt. “People who retire early typically have been focused and disciplined to be able to get there. That same focus and discipline will be required afterward — especially if one is considering serving a purpose greater than themselves,” according to an advisor.
How to keep boomerang kids from ruining clients' retirement
Parents are advised to do cost analysis to minimize the impact that their boomerang kids will have on their retirement prospects, according to an article in Forbes. Parents should also help their adult children to develop and stick to a budget and oblige their children to cover some of household expenses. Other tips for these parents include encouraging their adult children to save in retirement accounts and consult the family advisor on how to better manage their finances.
$1.7M is the magic retirement number for most Americans
Most 401(k) participants feel that they should amass $1.7 million in savings to secure their retirement, according to a survey by Charles Schwab in this article from CNBC. “[T]hat’s a pretty good number if you average out age and median salary across the U.S.” but “the bulk of folks do not get there,” an expert with Schwab Retirement Plan Services says.
How childless retirees can stay happy and safe
Clients without children are likely to experience isolation, financial exploitation, malnutrition and other illnesses in retirement, according to an expert in this MarketWatch article. To reduce their vulnerability to these risks, “solo agers” should build social networks, choose their home carefully and enlist the help of people who will act as their guardians when they are old, according to an expert. “[Solo agers] need to be thinking about how to stay safe and happy and satisfied with their life and connected throughout their life.”