If You’re Dreaming of Retiring, It’s Important to Make a Plan — and Commit To It

Some financial and estate planners use scare tactics propped up on numbers and dollar signs in order to frighten their clients into taking action. These planners may be sincere in their desire to help, but generally, this methodology is not working. According to a recent study by Merrill Lynch, the average cost to retire exceeds $700,000. If you are planning on enjoying the glitz and glamour of well-funded retirement, then substantially more savings will be required. Considering health care costs and medical expenses, Fidelity Investments estimates indicate that an average 65-year-old couple will need over $275,000 to cover these expenditures alone. Currently, fewer than 8% of working families have retirement savings the meet recommended targets.

Chris Hogan, a former banker and debt collector, is now a financial coach that advocates for a less intimidating approach. Hogan tries to motivate audiences to take action rather than scare them into retirement planning. Hogan writes, “That fear might get your attention for a moment. And while fear can be a wake-up call, it is also a negative emotion. Fear doesn’t create energy, and it doesn’t really cause lasting change.” He posits the best means to get people to engage in planning is to get them to dream. He wants individuals to ask themselves: “What is that one dream you have for your future? That one thing that would make you wake up every day and think, ‘I get to do this?’ ” Hogan does not ignore the reality of failing to plan for retirement and death, he simply uses the facts and numbers to inspire rather than terrify.

See Michelle Singletary, If You’re Dreaming of Retiring, It’s Important to Make a Plan — and Commit To It, The Washington Post, September 9, 2017.

Special thanks to Naomi Cahn (Harold H. Greene Professor of Law, George Washington University School of Law) for bringing this article to my attention.