All too often, retirement planning success is measured purely by financial metrics: savings amounts (15 percent per year), income replacement ratios (75 percent of preretirement income), or withdrawal strategies (4 percent per year). And the most critical part of planning for retirement is forgotten: the plan itself.
Put another way: how can an employee know how much money they’re going to need in retirement if they don’t know what they’re saving for?
74% of 50-59-year-olds have made a serious effort to plan for the financial aspects of retirement.¹ Only 35% of 50-59-year-olds have made a serious effort to prepare for the emotional aspects of retirement.¹
Visualize Retirement addresses the one planning need that many pre-retirees don’t even know they have: preparing for the non-financial side of retirement.
70% want to travel
57% want to spend time with family and friends
50% want to pursue hobbies
30% say they want to work
Following almost 1,000 people, a study found that people with “high purpose” were:¹
2.4x Less Likely to be afflicted with Alzheimer’s
Less Likely to develop mild cognitive impairment
Less Likely to develop disabilities or die young
Workforce Management Flexibility:
Food for thought: Even if widespread workforce management issues are not prevalent, consider the type of employee that may have a difficult time moving on: the “career-minded executive” whose identity is wrapped up in their achievements and stature within the organization.
To learn more about the Visualize Retirement program and plan sponsor and participant resources associated with it, please contact your plan advisor.
This article is provided by our valued partner, T. Rowe Price.