Why do you think most retirees want a big sum of money for retirement? So they can travel? Buy and enjoy expensive things they feel they now deserve? The real answer may surprise you.
Why seniors actually want retirement money
According to a survey by financial adviser Edward Jones, the primary purpose of money to retirees is a simple one. It is to provide security in the face of unexpected events. This has probably moved up to the number one position. That is due in no small part to the financial uncertainties caused by the ongoing coronavirus pandemic.
Edward Jones named the survey “Four Pillars of Retirement.” Having a security safety net exceeded the number two reason for retirees having cash on hand, which was that money offers the freedom to live how you want to live. 45% of respondents held this view.
You might be surprised that “to buy or have nice things,” was way down the list at number three, a sentiment that just 6% of respondents shared.
Do men and women feel differently?
While “security” and “freedom” were practically tied for the number one and two reasons in the survey on why to have a cash nest egg for retirement, there was a wide split between women and men on the topic. Women are far more focused on security, with 54% choosing security for the unexpected, compared with just 37% of men. By contrast, 53% of men focus on “having financial freedom,” while just 37% of women do.
Whatever your reasons, the experts agree that you cannot overemphasize the value of having cash on hand in retirement. It is never too early to start saving for retirement. The earlier you start planning and saving for retirement, the more you will have when you do.
If you have no clue where to start building your nest egg for retirement or find such things overwhelming, contact a qualified financial planner. In fact, he or she would be happy to put you on the path to achieving your retirement goals, whatever they may be.
Has the coronavirus impacted your retirement plans? How so?