Taking the time to plan for retirement likely to lead to many happy returns
I’ve seen it happen twice, once with a friend, the other with a relative. Both were happy-go-lucky fellows who saved little and didn’t think much about financial planning. Somehow, they figured, everything would work out and they would always have enough money as long as they lived.
As it turned out, they were right. Both died in their early 50s, one from cancer, the other from a heart attack. Their spouses - both men died without life insurance - have struggled since, having to ask relatives for money and continuing to work past the age they thought they would retire.
The lesson - beyond the need for adequate life insurance - is that a carefree, everything-will-take-care-of-itself attitude about money can lead to heartache. Taking the time to plan, far from detracting from enjoyment of the present, is likely to lead to readiness and optimism.
As evidence, I present the latest research from The Hartford Financial Services Group that shows Americans who plan for retirement are “decidedly more optimistic, more financially ready, and more likely on target’’ to meet their goals.
Meanwhile, worry and anxiety about having enough money to retire are “especially prevalent for those who have not taken the time or made the effort to plan for retirement,’’ according to a survey of 751 Americans 45 and older by The Hartford.
“Increasingly, people fear they may have serious financial issues in retirement and are therefore uncertain about when or even if they can retire,’’ said Jamie Ohl, director of The Hartford’s Retirement Plans Group.
But those who’ve planned for retirement were three times more likely to be confident they would have enough money compared to those who have not planned. Nearly 55 percent of the people surveyed said they or their spouse had a financial plan for their retirement. Among these “planners,’’ nearly two-thirds said they expected to enjoy more leisure activities, vacations, and holidays in retirement, compared to less than half of “nonplanners.’’
To be sure, people in good financial shape may be more inclined to draw up a plan for retirement or be able to hire a professional to do so. Surveys about retirement readiness often also advance an agenda. But numerous other studies, including several from not-for-profit groups such as the Employee Benefit Research Institute, have shown a strong link between planning for retirement and having confidence in meeting retirement goals.
One way to start a retirement plan is to commit to putting money away for retirement regularly. An survey on New Year’s resolutions by TD Ameritrade found 27 percent of Americans have resolved to start or build their retirement savings by socking money away in an IRA or 401(k)-type plan in 2010, up from 21 percent in 2009.
Humberto Cruz can be reached at AskHumberto@aol.com. 
