Retirement and financial planning should take on a holistic approach. There are two parts involved, preparing for retirement, and being in retirement stages. Both stages are equally important in your approach to how you view your mind, body, and your money as it will set the stage for pursuing goals and enjoying retirement. Living a good life now will enable you to live a good life later. People live longer and need their minds to be clear, their bodies to hold up, and their money to last. Let's take a look at each area and why you need a holistic approach toward retirement planning.
Your Mind. According to the American Psychological Association, the 2021 Stress in America Report connects the links between stress, the body's ability to stay healthy, and the financial implications of both. Mental health determines how you treat your body and how you manage your finances. Poor mental health commonly leads to physical health problems, and a byproduct is the inability to control one's finances or maintain employment. With COVID-19, American’s feel more stress than ever when it comes to their finances.
People with better mental health tend to plan and save for retirement, manage their finances, and maintain regular jobs. They practice a healthy lifestyle because they view themselves retiring someday. Maintaining good mental health in retirement is just as important as when you're younger, and medical intervention should happen if you experience a change in mental capacity or depression.
Your Body. How you take care of your body before retirement determines what you may pay in healthcare costs in retirement. Examples of this would be not exercising during pre-retirement years or obesity, where either causes hip issues, leading to surgery, life-long mobility problems, and unanticipated expenses in retirement. Nutrition, exercise, and lifestyle choices are tied directly to a longer, healthier life. Remaining active throughout retirement can increase your body's chances of lasting as long as your life and with minimal physical ailments.
Your Money. Saving money throughout your working years helps you develop a habit of stretching your retirement savings when you're retired. Saving and spending habits develop early in life. Also, people tend to treat their financial health the same all through their life- either poor or healthy! Treat your money as a precious commodity that you can lose if you don't manage it properly. Additionally, work with a financial professional to develop a plan to help you manage your savings and spending and keep you on track.
Remember that having retirement assets and an emergency fund will help you in retirement if you develop mind or body problems. Work with your financial professional to develop a holistic retirement strategy for your situation.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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