Are You Stressed About Money in Retirement? Take These Steps to Find Financial Stability Again

Eight out of 10 Americans aged 60 or older are struggling financially, and about the same number of Americans of all ages believe the country is in the grip of a retirement crisis.

A 2023 Gallup poll found that only 43% of those surveyed anticipated having sufficient income to retire comfortably. Among those who were concerned that they couldn’t, 71% described themselves as at least moderately worried, and 42% of those respondents added that they were very worried.

Gender plays a role. It’s been found that women are more likely than men to have no retirement savings at all.

When the Future Feels Uncertain

The Cedars-Sinai healthcare organization indicates that anxiety disorders are prevalent among those aged 65 and over. About 14% to 17% of this age group have been diagnosed. But you’re not defenseless. You can take several steps and actions to conquer your restless mind and nerves.

Control What You Can

You can take some steps if you haven’t retired quite yet but the event is looming. Eliminate as much of your debt now as possible and avoid taking on additional obligations. Your projected retirement income will stretch farther.

In addition, make a budget. Start by determining how much money you’re likely to need. Identify all sources of income you can reasonably count on, such as pensions, retirement plans, and Social Security. You can then add in interest and dividends from other investments and what you anticipate earning if you continue to work—whether that’s a little of full-time.

Now factor in your anticipated expenses. Categorize them into two groups: necessary spending and discretionary expenditures. That first group includes things that you can’t live without like housing, health care, and groceries. Discretionary spending includes outlays for things that you want but that you can go without if you must.

You’re in pretty good shape if the totals of your income and expenses are about even—or of course if your income exceeds your spending. Just remember, the numbers can and probably will shift a bit by the time you retire, even if the event is only a few years away. Some of your costs might go down. You won’t need that work-related wardrobe any longer, and you won’t have to pay for transportation to get to work every day. And don’t overlook the discounts that many retailers and services offer to senior. If you can identify specific ones, bake this into your budget. But keep it real; factor in expenses that are likely to rise in the future. Property taxes tend to rise over time, but see if your town, city, or county offers a discount once you hit a certain age.

Some experts suggest automating payment of your monthly bills in retirement to relieve yourself of any associated anxiety as you subtract those figures from your checking account balance. And if news about market fluctuations and volatility stresses you out, avoid reading those segments of your daily news.  

Your Health and Your Mindset

You’re dealing with a significant lifetime transition, so it’s natural if you experience some stress as you enter retirement. Remember, graduating from school and having your first child didn’t come without at least a little nail-biting either. You can deal with your retirement-related emotions in a few ways.

For one, take comfort in knowing that your retirement circumstances aren’t set in stone. You can make changes, if necessary. You can downsize to cut costs and demands on your time and energy. You can boost income by working, which includes freelancing. Work also helps relieve anxiety. If you like to stay busy and do not need income, consider volunteering. Also, mentoring is a way to share your expertise.

Maybe pursue a newfound or long-forgotten hobby. Keep your brain active and challenged and your emotions in a smile zone by taking deliberate steps to engage in things that make you feel good.

Consider adding a walking or exercise routine to your daily schedule. Maybe take up meditation or adopt some breathing exercises that you can resort to when your mind tries to veer into anxiety mode. And don’t overlook the value of maintaining good sleep habits. A healthy diet can be critical, too. Coffee and caffeine are not your friends, at least not later than mid-morning. 

Don’t Try to Do It Alone

Help abounds if you don’t feel up to tackling all or any of this on your own. Reach out to your physician if you feel anxiety creeping up on you, even if you don’t feel that you’ve reached a critical point yet. They can refer you to a therapist with expertise in your area of suffering. Cedars-Sinai says that anxiety manifests in physical symptoms more often in retirees than it does in younger patients, and your primary care physician can help you with this, too.

Then there are those finances that brought your worrying to this point in the first place. Don’t overlook the assistance of an investment or financial professional. Think about having them take a look at your income and expenses and identify areas and issues that you might be able to change.

Don’t overlook the value of social support. You’re certainly not the only one going through this. Get out with friends periodically, even if it’s just to get together over a cup of coffee (in the morning!) and talk for a while. Look into clubs or local organizations that join people with similar interests, particularly retirement support groups and senior centers. Attend community events.

The Bottom Line

The world is full of people who are experiencing the same feelings you are. You may not be able to control the economy, inflation, or the future of Social Security, but you can get a handle on your own thoughts and finances, and you can ask for help. It’s out there.