Lower your expectations
If you don’t like your job, hate your boss, don’t get along with coworkers, I understand – retirement would look like heaven to you. You want it badly and can’t wait the day when your alarm clock will be turned off for ever.
But there are many people who like their jobs and have no problems with management or colleagues, who still are eagerly waiting to enjoy retirement and do things they were not able to do before (yeah, everyone says – traveling).
Since time has only one direction, that day will inevitably come, but don’t be so excited. Lower your expectations. We, humans, tend to see things in the future with a pair of rosy glasses on. Especially when it comes to the money you would need to maintain your lifestyle. Here is what a recent study in the US reveals:
According to research conducted by Dan Ariely, people need 135% of their final income to live the way they want in retirement.
Dan Ariely, a professor of economics and behavioral finance at Duke University, did not ask people to estimate how much of their final salary they will need. He asked them questions like: How do you want to live in retirement? Where do you want to live? What activities do you want to engage in?
Ariely then took the answers and “itemized them, pricing out their retirement based on the things that people said they’d want to do and have in their retirement.” Using those calculations, he found that people want to retire to a standard of living beyond what they currently enjoy.
Humans. We always want more than what we need.