With so many people frighteningly behind on stocking their financial freedom pots, you’d think that the 50-somethings rapidly approaching retirement would be the most frightened about their financial future. But a recent Pew Research study revealed a startling fact – the greatest financial anxiety and fear is currently being experienced by those in their mid-to-late 30s.
So what is frightening these 30-somethings?
Lack of confidence
Overall, confidence about whether people will have enough income and assets during their retirement years has decreased sharply over the past several years. This is in stark contrast to the experience investors have had over the same time as the stock markets around the world have more than doubled since the bear market of 2008.
What’s even more surprising is that younger adults, with plenty of that wonderful wealth spice TIME to go before they’d even consider retirement, are more anxious about their financial future than the 50-somethings who’s financial clocks are ticking loudly as they rapidly approach retirement. Over 50% of those aged 36 to 40 are either not too confident or not at all confident about their chances of having enough in their wealth pots to feed themselves in their retirement years.
What’s going on?
30-somethings know that the chance of the government looking after them in their retirement is as likely as a fish and a pig having a successful co-creation moment and that it is up to them so ensure they sort out their worn financial wellbeing but they haven’t been taught how. They have no idea how to convert the income they bring in into assets that actually grow and work for them. They have seen the disillusionment of their parents generation from under performing financial products and the consequence of not having all their wealth foundations in place but they have never been taught the skills to determine the good from the darn right rotten or even what different things they should have in their wealth plan to ensure they actually achieve financial freedom.
This confusion and uncertainty has resulted in paralysis for many. Although they know they should be doing something, the fear of getting it wrong has resulted in doing nothing or very little.
It’s hard to exaggerate the impact that not getting started and then sticking to your wealth plan letting your asset pot expand steadily and consistently. This includes not only staying invested during market downturns and subsequent rebounds but also continuing to invest.
It’s not too late for anyone to stated and most definitely not too late for those anxious 30-somethings to ensure themselves a seriously wealthy feast, but getting started is the key.
The steps are straight forward. Get rid of debt, build up an emergency fund to cater for those to be excepted “unexpected” events, and set up a regular investment contribution investing in simple low cost stock market vehicles like index tracker funds and exchange traded funds.
After a huge stock market rally that has helped so many people recover from the worst of the financial crisis, it’s heart breaking to see so many people missing out of having their money working hard for them due to fear and financial illiteracy.
Start where ever you are, but start you must. The Wealth Chef book gives you step by step instructions on everything you need in your wealth plan and provides you with the tools and skills to get your money working hard for you so you can free yourself from the fear and get on with living a juicy feast of your life.
I would love to know what worries you about your money and financial future. What has stopped you investing and getting your money working hard for you. Please share in the comment box below.