Retirement Tips – Slightly Weird Ways to Prepare for Retirement

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Research is beginning to emerge from the new field of behavioral finance – the study of people’s relationship to financial issues. Money Magazine recently reported that researchers have discovered some surprising ways people might better prepare for retirement.

These ideas include:

Visualize Yourself as Old and Write Down Your Impressions

It turns out that the brain processes your future self as a stranger. And, let’s face it – you are unlikely to save for the retirement expenses of a stranger.

To increase the likelihood that you save for your retirement, they suggest that you imagine yourself in the body of one of your own grandparents or great grandparents. Think about what this old version of yourself wants to do and where you are living. Consider this person paying the bills in retirement. By visualizing yourself in retirement – and writing down these thoughts to make them more real – you may be far more likely to adequately prepare for being this older person.

Use Peer Pressure

Scientists suggest that you might try telling a few friends about a savings goal and ask for their support. Their expectations can spur you to save.

Other research from Yale found that people who see data showing how their peers are saving are more likely to participate in retirement plans. The NewRetirement Retirement Calculator lets you compare your finances to others in your zip code.

Stay Focused on Savings

Human beings are naturally focused on the here and now. Behaviorists suggest that simply setting up a monthly reminder to save for retirement can be one of the simplest ways to stay on track. Employer health insurance is a big bonus for seniors.

Private health insurance can be prohibitively expensive and basic Medicare has big coverage gaps.

Easy Steps to a Better
Retirement Plan...

Use the NewRetirement Automated Retirement Assessment to compare options for improving your plan. Get the pros and cons on strategies personalized for you.