It’s that time again. Time to corral as many people as possible into a conference room to listen to this quarter’s 401k presentation. Time to explain a Summary Plan Description, Contribution Limits, Beneficiaries, Distributions, Company Match and, my favorite, Rollovers. (Followed by heavy naps!!)
There’s a reason it’s usually done this way.
Companies do a very good job of understanding what their customers want, so they gear their marketing to answer “Why” questions first, and then the “How.” But when it comes to explaining things like 401k plans to their employees and how they fit in with retirement planning, companies go right for “How” and forget “Why.”
That’s because the 401k provider or administrator usually gives the presentation, so it becomes technical, legal and heavily financial, totally ignoring the “Why” reasons—except for (wait for it) “you’ll need it for retirement “.
Hang on a minute.
Who said, “Retirement? That’s for old people far in the future. First, I need to pay my mortgage, pay off my student loans, save for my kids’ college education and finally, pay for our next family vacation.”
All very good “Why” reasons and very little “How”. That’s the problem!
We tend to view 401k presentations as a duty-bound technical lecture of “How it works” and not a human-side “Why” discussion of why you need to put it into your “A” list of priorities for retirement planning. For example, what might happen when your health fails or your presence is no longer needed by the company after you turn 65.
A retirement coach can help explain the “why” of 401k plans
What every 401k presentation needs is the 401k administrator to explain the “How”, but equally important—a Retirement Lifestyle Coach to tell them “Why” they need to invest now for their future.
Executives need to know that once they leave corporate life, if they have not planned psychologically and financially for that next phase of life, it may become the most terrifying time of their lives rather than the most joyful.
Getting the retirement that you want
Today, retirement is not sitting on a beach all day, playing golf incessantly, or traveling the world without end. In fact, retirement is not an end but a transition to a new beginning where you focus on what you want to do rather than have to do. For example:
- You choose to continue to work because it is your passion, not because it’s all you know and you need the money.
- You choose to volunteer locally at a not-for-profit because you feel they make a difference and you want to be part of it.
- You choose to downsize your living space so you are not captive to all the costs of the big house.
- You choose to take those occasional trips to places you’ve always wanted to see.
- You choose to check off everything on your bucket list while you still can.
Yes, that is the way you want to spend the last 20 or 30 years of your life. You want to spend it joyfully and free of regrets and fear. That’s why it’s so important to take care of retirement planning now.
Take a look at some “Why” statistics when it comes to saving for what’s next:
- The average age of retirement today is 62. The average lifespan of a retiree is 84 with many living well into their 90’s.
- Today, only 25% of Boomers believe they will have enough money in retirement. Only 28% believe they are doing a good job financially in preparing for retirement, according to a 2018 study by the Insured Retirement Institute.
Some very sobering reasons why you need to switch from collecting wealth to taking care of your health are:
- Because you can’t take your wealth with you when you leave this world and if you are not healthy you can’t enjoy your life as you envisioned it.
- Because without good health this part of your life can become rather dark where you go from depressed to disabled to six feet under.
These reasons all answer “Why” you need to put your 401k plan on your “A List”— and why your company needs to invite a Retirement Coach to share what actually happens in your next phase of life so that your retirement plan does not become “I will simply die at my desk.”
It’s time to work smarter, not harder on your retirement planning. It’s time to get Retirement Lifestyle Coaching on your team.
When you work with us, you’ll have everything you need—and more—to clear your runway to the retirement lifestyle you’ve imagined. Retirement Lifestyle Coaches are here to ensure you enjoy a smooth takeoff into the clear blue skies of your fulfilling retirement future.
Whether you need to jumpstart your retirement goal setting or need some guidance to get back on the path to realizing your retirement lifestyle dreams, we can help.
With our expert help and support, your life’s second act will be your best one yet!
Bob Foley is your Retirement Lifestyle Coach and you can reach him by email at bob@retirementlifestylecoach.com or simply by scheduling time on his calendar here.
