I recently attended an interesting presentation by
Joni Youngwirth. The premise was that
financial planners do a great job of helping their clients figure out if they
have sufficient financial resources to meet their retirement goals but could do
a better job of helping clients get ready for the non-financial aspects of the
transition into retirement. I thought
about it, and it does seem the transition into retirement is easier for some
clients and harder for others. What’s
the secret? It’s a little different for
everyone, but a common element for clients with easier transitions is they have
actively developed interests and activities to “retire into.”
Our
time at work does more for us than just provide financial benefits. It is where we can find purpose, status, and
meaning. It can be a large part of our
social circle, a place to feel connected to the larger world, and a structure
to manage our time. Clients with the
most successful retirement transitions recognize the non-financial benefits of
work and develop a plan to reestablish the benefits through activities
unconnected to the workplace.
Visualization is a technique often used by performers
and athletes to mentally “see themselves” performing an activity before they go
on stage or walk on the field.
Visualizing different parts of the retirement transition process can be
a useful way to identify areas that need further development. For example, after the initial “to-do lists”
are complete, what do you plan to do on a typical Tuesday? Mentally map the day out hour-by-hour and
then write it down. Will you wake up and
go to the gym? Will you drink coffee and
read the newspaper until 10? What
then? Will you volunteer at your
church? Play golf in the afternoon with
friends? Take a class? Who is cooking dinner? Will you take a walk after dinner with your
spouse? Now try to visualize and
schedule a whole week. If you had large
blocks of unallocated time, your retirement transition may be harder. If you are excited about the way your
schedule looks, there is a good chance your transition to retirement will be
easier.
Consider developing a hobby before retirement. People who don’t have many interests outside
work (or work is their hobby) can have a harder time transitioning into
retirement. People that have hobbies or
are actively planning on mastering a skill like golf or playing an instrument
are more likely to have smoother transitions into retirement.
Think about your social situation during
retirement. Staying engaged with others
is healthy. Isolation is not. If much of your social network was connected
to your workplace, think about how you are going to socialize after retirement. I have seen people successfully make new
friends and reconstitute their social groups through involvement in their
church, other charitable activities, and through groups associated with a hobby
they enjoy.
If you are married, take a long vacation (or two) with
just your spouse before retiring.
Vacations are great for many reasons, but during this time they can
allow the two of you to re-establish dormant connections and create new shared
experiences. It is common for clients to
mention they are concerned about the amount of time they will spend with their
spouse after retirement. Longer
vacations, with periods of extended “downtime,” can give a glimpse into how
shared time with your spouse will be in retirement. (It is often at this time, your spouse will
help you find a hobby that requires significant time away from
your house.)
Lastly, stay healthy.
Life is better if your health is good.
The old saying, “If you have your health, you have everything,” really
is true. Staying physically active seems
to protect against a number of diseases and injuries associated with
aging. Consider approaching mental and
physical exercise as a part of your “new job.” Treat them as something you must do every day.
Taking time to plan for the non-financial aspects of
retirement can make your transition to this new phase of life much easier. Our advisory team has years of experience
helping people through this transition.
Feel free to contact us and
discuss your retirement— beyond the numbers.