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Retirement Savings Personality

What’s your retirement savings personality?

Your approach to retirement makes all the difference

Are you confident in your ability to save for a long and fulfilling retirement? It’s an important question. And how you answer it can tell a lot about you, and your ability to achieve your retirement goals.

A study issued jointly by The American Savings Education Council and the Employee Benefit Research Institute asked a variety of behavioural questions of several people who were close to retirement. They found that the soon-to-be retired can be categorized into five broad groups, based roughly on their emotional responses to the process of saving for retirement.

These people have spent considerable time thinking about retirement and have a plan to save and invest what they need to achieve their retirement goals. They are comfortable with most elements of financial planning and are optimistic about their financial futures.

These people share much in common with the first group but are somewhat more cautious about the future. They are disciplined savers but tend to avoid risk with their investments. As a result, their portfolios often lag the performance of other investors.

For these people, saving for retirement is something of a battle. It’s not always clear why: they are often disciplined savers and spend ample time thinking about their financial well-being. However, they lack a coordinated plan to see them into retirement. That leads them to be more anxious than planners and savers, and more unclear of what they should do to make things right.

These are the risk-takers: fully confident they will reach their retirement goals, they build portfolios of aggressive investments, and cut back on their saving because they believe their portfolios will pick up the slack. This puts them at risk of a serious financial shortfall in retirement.

These people find financial planning distasteful and boring, and rarely take the time to think about their retirement savings. As a result, few feel confident they will attain them.

So which category do you belong to? If you’re not in the first category, it’s time to talk to a financial professional. Having a plan is the best way to ensure your retirement goals are met.

The opinions expressed within this article/communication are those of the Financial Advisor and are not necessarily those of Keybase Financial Group Inc. Any data provided is for illustration purposes only. Clients and prospective clients should always read a product prospectus and fully understand all of the risks associated with the product before purchasing. Any information relating to the discussion of taxation issues is considered to be only general in nature. Clients should seek a qualified tax professional to discuss their specific tax requirements.
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