Seeking the Simple Pleasures in Retirement

Spending wisely and financial preparedness add up to less worry

Despite an overall optimism about retirement and wise spending, 71 percent of baby boomers feel that they may not have enough money in retirement. Also, perhaps in light of the new reality that they may outlive their retirement savings, a majority of pre-retirees are preparing by looking forward to enjoying the "simple pleasures" in life during retirement.

A fall 2006 retirement survey of 2,500 U.S. adults age 45 to 64 conducted by Thrivent Financial for Lutherans uncovered that many baby boomers (58 percent) have resisted purchasing temptations (such as vacations, vehicles and impulse shopping) to maintain their retirement strategies. However, other debts, such as mortgage payments and credit card debt, have prevented them from saving more money for retirement. Baby boomers also worry about the possibility of an unexpected medical expense or other financial catastrophe greatly impacting their retirement programs.

Regardless of current spending practices or financial goals in retirement, a number of organizations offer tools and services to help consumers spending wisely.

One of the most important aspects of controlling spending is to create a budget. Thrivent Financial (www.thrivent.com) offers an online calculator to help do just that. By entering income and monthly expenditures, one can see how much they have left to save and where their money is being spent. In addition, this resource allows users to compare their budget breakdown to a recommended target budget, which can help identify areas for improvement.

Strange as it sounds, "spending wisely" may mean spending money. Protecting yourself from unexpected financial problems is important to your financial security. Accidents, illness, disability and death can cripple a family's financial stability. Health insurance, automobile and homeowners insurance, life insurance and disability income insurance are important tools in protecting one's financial stability.

Thrivent Financial's survey found that pre-retirees identified with Jed Clampett from "The Beverly Hillbillies"—a simple man seeking simple pleasures. Boomers surveyed are also overwhelmingly seeking less-expensive retirement options such as volunteering, traveling within the United States and spending time with grandchildren.

Financial professionals can provide guidance through a financial analysis of individual finances, goals, personal values and aspirations. The result will be a retirement program created to meet your specific, personal retirement goals. Whether wise spending is a financial necessity or simply a lifestyle decision, it is an important element for each person's retirement readiness. Fortunately, there are tools and services available to help match lifestyle choices with financial needs.