A ‘Retirement Mindset’ is Key
Goldman Sachs’ findings also highlight the behavioral and mindset differences of those who have a personalized plan for retirement and those who do not, demonstrating how outlooks can be crucial in achieving a secure retirement.
Those who engaged in retirement planning were likelier to be more future-oriented, better informed about financial matters, and more reward-oriented, Goldman Sachs found. Conversely, those with a plan were characterized as present-oriented and more likely to adjust spending behaviors. They were also more likely to seek fewer sources of education and advice but did rely on help from personal sources like family members and spouses.
Goldman Sachs underscores the vitalness of retirement planning behaviors, adding that even if participants have a plan ready, they still need to be prepared for life events that could potentially disrupt their path. It’s these positive behaviors associated with “financial grit,” like confidence, engagement, and willing to sacrifice immediate happiness for future savings, that will drive successful outcomes, said Ceder.
“Those are the moments that are just really hard to navigate and even to plan for,” he added. “That’s where, again, that grit moment becomes really important because you’re going to have to make sacrifices, you’re going to have to make decisions. Again, having that plan for retirement gives you basically that North Star so that you can balance one decision versus the impact that it will have on another, and really hoping that will give you a way to chart that course through.”
SEE ALSO:
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Financial Vortex May Threaten U.S. Retirement Savings
Women Face ‘Financial Vortex’ in Preparing for Retirement
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
