You will retire someday

October 16, 2013

You will retire….someday – In one of my former roles, I was responsible for overseeing the 401(k) Profit Sharing Plan of my company. One of my sharp young colleagues in his twenties boasted that he was going to retire at age 50. When I asked if he was saving in the 401(k) Profit Sharing Plan and his answer was no, I decided to use the shock effect. I told him there was no way in (colorful metaphor deleted) he would be able to retire at age 50 if he hadn’t already started saving. When I showed him an illustration of how much money he was giving away, he got the point and he began to save.

The moral of this story can be summed up in this great quote from Dr. Phil – “the difference between a dream and a goal is a timeline.” I would add to that a “plan” as well. Emphasize to your associates they will retire someday, and someday will be here a lot faster than they think; so start saving now. And, for plan sponsors who want to nudge employees in that direction, a little bit of auto-enrollment will cure a lot of what ails people.

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