Is early death a viable alternative to being broke in retirement❓

A new survey from Wells Fargo shows 22% of people say they would rather die early than not have enough cash to live comfortably in retirement.

The Wells Fargo survey also discovered that 41% of those in their 50s are not putting anything aside for retirement, and 48% admit they will not have enough money to survive in their golden years. Source Money 11-12-14

How sad is this? This is only one of many similar surveys and studies indicating a bleak outlook for future retirees. Depending on who you listen to, the reasons for this state of affairs vary. I am of the mind that with relatively few exceptions the biggest problem is poor financial priorities and a live for today attitude. All but the poorest among us can afford to save if they put their mind to it and exercised some discipline.

If saving comes first and what you can afford to buy comes second, the picture looks much different.

Here are a few simple examples:

The average coffee shop coffee costs $3.25 a day or $97.50 a month.

A manicure averages $20.00 or $80.00 a month for many women.

A pack of cigarettes averages about $6.25, a lot more in some states, or $187.50 for the unfortunate pack a day addict.

For some families an annual trip to a Disney park is a must. I’ll peg that week at a very modest $5,000.

Skip that fancy cup of brew and you’ll have $225,242. Do your own nails and pocket $184,814 for your golden years. Stop that disgusting smoking habit and you’re sitting pretty with $433,158 at retirement. Don’t stop smoking and retirement may not be something you have to worry about. Finally, skip Mickey and friends and there is a whopping $961,033 in your future.

All the above assume an 8% annual return over 35 years.

Okay, so such frugality my not be 100% practical, but the point is setting priorities is important. Among those priorities is your future. When someone says they don’t have any money to ….. , “save” should not be the first word inserted. There may not be sufficient money to fulfill all wants or desires, but everything on that list should come behind saving for the future.

Do you want fries with that?