Retirement Plans for the Scatterbrained

Let’s Start with the Elephant in the Room: You're Going to Retire Someday

Retirement planning isn’t exactly the hottest topic, especially if you’re dealing with ADHD and struggle with tasks that require consistent long term application and/or delayed gratification. "Scatterbrained" is not a fair term, but it's one a lot of us get labeled with. However, if you find yourself saying things like, "I'm never going to be able to retire," well, it's definitely a sign you need to do something about it. Now. Today. Not tomorrow.

Here’s the thing: you don’t have to do it perfectly, there are a lot of ways to make it neurodivergent-friendly. Starting small, automating when possible, and choosing the right tools can make the process less painful and even a bit rewarding.

If You're Not Already, Why Start Saving for Retirement Now?

Here’s the tough-love version: Retirement might seem like a distant dot on the horizon, but it’ll sneak up faster than you think. The earlier you start, the longer your money has to grow. Here’s how compound interest works: your initial contributions earn interest, and then that interest starts to earn interest too. Even if you save small amounts regularly, compounding can lead to impressive growth over time.

If you wait too long, you might have to save a much larger portion of your income to catch up. Those who start early need to save less in the long run, and that’s the power of compounding in action.

It's never too late to start or up your game, but tomorrow may be.

How to Get Started (Even If Your Brain Says “Not Today”)

1. Break it Down

Start with tiny, manageable tasks. If you’re new to retirement planning, focus on learning about one thing at a time, like understanding what a retirement account is or setting up an initial contribution.

2. Automate, Automate, Automate!

Automation is your friend. ADHD brains are notorious for forgetting about ongoing tasks, so setting up automated contributions can help. Many retirement accounts let you set up automatic deposits from your checking account or even directly from your paycheck.

3. Celebrate Progress (No Matter How Small)

Acknowledge every step forward, no matter how small. Got your account set up? That’s a win! Made your first deposit? That’s progress! Rewarding yourself reinforces positive behavior, which can help make saving a habit.

Choosing the Right Type of Retirement Account

With ADHD, simplifying choices can prevent overwhelm. Here are a few types of accounts to consider:

Employer-Sponsored 401(k)

If your job offers a 401(k) plan, this is often the easiest way to start saving. Many employers match contributions up to a certain percentage, which is essentially free money. Start by contributing enough to get the full employer match if possible. The money is typically pre-tax, meaning it lowers your taxable income, and it grows tax-deferred.

Traditional or Roth IRA

If you don’t have a 401(k) or are looking for an additional option, consider an IRA (Individual Retirement Account). IRAs can be opened through most financial institutions, and they come in two flavors: traditional and Roth.

• Traditional IRA: Contributions are pre-tax, and the money grows tax-deferred. You pay taxes on withdrawals in retirement.
• Roth IRA: Contributions are made with after-tax money, but withdrawals in retirement are tax-free. If you anticipate being in a higher tax bracket in retirement, a Roth IRA could be a wise choice.

Simplified Employee Pension (SEP) IRA

If you’re self-employed, a SEP IRA is a great retirement tool. It allows for higher contribution limits, which can help you save aggressively if you’re your own boss.

Brokerage Account

While not technically a retirement account, a brokerage account can also be used to save for retirement, especially if you want flexibility with your funds before age 59½. Just remember, you’ll pay taxes on any earnings.

How Much Should You Plan to Save?

A common rule of thumb is to save 15% of your annual income for retirement, but you can start with whatever feels manageable and work your way up.

If a percentage is too hard to visualize, try setting a monthly goal. Start with whatever amount you can afford without stressing. For instance, $50 per month is a great starting point if that’s what you can manage.

A Handy Formula for Estimating Retirement Savings

As a starting point, aim to save 1x your salary by age 30, 3x by age 40, 6x by age 50, and 8x by age 60. These milestones are just guidelines, so don’t worry if you’re behind. The important thing is to start and keep moving forward.

ADHD-Friendly Tools for Tracking and Managing Your Savings

Apps for Tracking and Automating

Here are some apps that can help you stay on top of retirement savings without feeling bogged down.

1. Acorns: A micro-investing app that rounds up your purchases and invests the spare change, making it a low-effort way to start building an investment portfolio.
2. Qapital: This app lets you set savings goals and even automates deposits when certain conditions are met, like rounding up spending or setting up recurring savings triggers.
3. YNAB (You Need a Budget): YNAB’s user-friendly interface can help you create a monthly budget that prioritizes saving for retirement.
4. Stash: This app is great for beginners who want to start investing with as little as $5. It provides educational resources and investment recommendations tailored to your preferences.
5. Betterment: A robo-advisor that automates investing based on your goals and risk tolerance, Betterment can handle your retirement savings without needing constant adjustments.
6. Fidelity and Vanguard: These are well-known financial institutions that offer both DIY and managed retirement account options. Their apps and websites are streamlined for ease of use, and they offer a wealth of information on retirement planning.

Other Websites and Tools for Financial Education

• Investopedia: Provides easy-to-understand articles on everything from 401(k)s to IRAs.
• FINRA’s Retirement Calculator: Allows you to input your age, income, and goals to get an estimate of how much you’ll need for retirement.
• Morningstar: Offers detailed fund reviews and ratings for DIY investors.

Tips to Make Retirement Saving ADHD-Friendly

1. Visualize the Goal

Using visual reminders can make retirement more concrete. Consider setting up a simple progress tracker that shows your account balance or a savings thermometer that you can fill in as you save.

2. Make it a Game

Turn saving into a fun challenge. Challenge yourself to save $1 more each week or try a “no-spend” week every month to free up funds for retirement.

3. Use Alarms and Reminders

Set calendar reminders or alarms to check in on your progress monthly or quarterly. This small ritual can help keep retirement savings on your radar without overwhelming you.

4. Buddy Up

Find a friend or partner to save alongside with. Set a shared goal and check in regularly with each other. Having someone to keep you attached to your goal is essential for many with executive function challenges.

5. Embrace Imperfection

ADHD brains often struggle with perfectionism. If you forget to save one month or make a lower contribution, don’t beat yourself up. Progress is what matters.

Most Importantly, Be Kind to Your Future Self

Saving for retirement doesn’t have to be a monumental task. Start small, automate where you can, and use the tools that work best for your ADHD mind. Remember, even small actions today can have a huge impact down the road.

Your future self will thank you for every single dollar you save. And just think, with the right planning, you’ll eventually be able to live out your golden years on your terms—ADHD and all!

Disclaimer: As ALWAYS, this article is for educational and motivational purposes and is not financial advice. Always consider consulting with a financial professional for guidance tailored to your unique situation.