It’s Never Too Late or Too Early to Start Planning for Retirement
Nebraska Psychologists Offer Tips to Save for Retirement
(November 15, 2015)
The American Psychological Association’s (APA) most recent Stress in AmericaTM survey found that 44 percent of Americans reported saving for retirement as a very or somewhat significant source of money-related stress. Workers can conquer this fear by thinking about what they’re saving for, and how much they will need for living expenses during retirement.
Nebraska psychologists offer tips to better save for retirement:
Make saving a priority. If you receive a regular pay check set aside some amount of money for retirement or unexpected expenses like car repairs or health emergencies. It doesn’t have to be a large amount, it just needs to be something. Even starting with $5 per week can help build a habit of saving. Over time you can increase the amount according to your income.
Identify financial stressors and make a plan. Take stock of your financial situation and what causes you to stress over money. Write down specific ways to reduce expenses and save more. Then commit to a specific plan and review it regularly. Although this can be anxiety-provoking in the short term, putting things down on paper and committing to a plan can reduce stress over time. For example, if you pack your lunch four days each week, you could save $40 per week, and more than $2000 per year extra that can go into savings. Also, the one day you eat out each week might feel more like a treat.
Make it easy on yourself. Use automated systems as much as possible. Arrange to have a portion of your paycheck automatically deposited into your savings or retirement account. It’s a lot easier to save when you don’t have to think about it. You can set up automatic transfers into your savings accounts when you get paid or on a predetermined day of the week or month at most banks.
Take advantage of employer contribution match. Many companies offer to match retirement contributions up to a certain percentage of an employee’s salary. By taking advantage of this benefit, you can double your retirement investment. If you don’t, you’re effectively turning down free money.
Talk to an expert. Just like people schedule an annual checkup with their doctor or meeting with their accountant, make an appointment with a financial planner to talk about your savings goals. A financial planner can help you devise a savings plan. If you are overwhelmed by stress, talk to a psychologist who can help address the emotions behind financial worries.
“Few of us like to talk about money; it’s a subject that’s often considered impolite to discuss, even among close friends and family,” says Dr. Diane Marti, the PEC coordinator for the Nebraska Psychological Association. “But Nebraskans are stressing about money, and that can affect our health and relationships in ways we never imagined. Talking about your financial concerns can be an important step toward reducing stress levels.”
To learn more about stress and mind/body health, visit www.apa.org/helpcenter and follow@APAHelpCenter on Twitter. Follow us on Twitter at @NEPsychAssoc.
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The Nebraska Psychological Association is the only statewide organization dedicated solely to represent the interests of psychologists and psychology across Nebraska. NPA membership includes 40% of the licensed psychologists in Nebraska, and is an affiliate of the American Psychological Association. NPA promotes the independent practice of clinical and consulting psychology; the highest standards of ethical & effective practice; the dissemination of evidenced based practices; the application of psychological resources to address social problems; and the education of government entities, elected representatives and the public on the practice and science of psychology. NPA holds scientific and professional meetings, conducts continuing education programs, and advocates on behalf of psychology in the Nebraska Legislature. NPA’s Central Office is located in Lincoln, NE.