Are These 3 Factors Delaying Your Retirement?

Harvard Business Review published research this week about why many professionals find it difficult to call it quits when they reach the age of retirement. And while concerns about increasing costs of living, longer life expectancies and the ever-precarious state of Social Security persist, the study found that none of those factors weigh on working professionals as much as three psychological issues:

1. Identity
2. Purpose
3. Relationships

For those who are financially prepared to retire, getting accustomed to the idea mentally is the next step. The study suggests pulling the trigger on retirement can feel more manageable if you address these psychological barriers in advance.

Try identity-bridging by transitioning your self-perception from worker to retiree; find a way to spend your post-retirement time; and put some thought into how you’ll maintain a sense of community outside of the workplace. You’ll be ready to retire in no time. 

— Jordan Chussler, investing and banking editor

According to a new Vanguard analysis, about 28% of savers who rolled over 401(k) funds into an IRA in 2015 didn’t reinvest the money, leaving it sitting as cash for at least seven years. This is (unfortunately) a common mistake that costs savers a collective $172 billion per year, or $130,000 per person, in forgone wealth by the time they reach retirement age.

Saving money is a great first step, but you can really unleash your growth potential with high-yield options. Opening (and funding) a savings account with a high APY can mean more gains in the long run. So can using a debit card that offers cash-back rewards, giving you even more opportunities to stash money in savings. To get started, simply click below.

See our curated list of smart saving options.

The information provided in this email is not intended as financial or investment advice.

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