How much have you thought about life after retirement?
Many people think about when to retire. But in my experience as a Registered Life Planner and Financial Lifeguard, I’ve found that few go beyond the question of when.
This concerns me. About 25 percent of adults aged 65 or older struggle with mental health. Too often, the issue is post-retirement depression.
Why? Because retirement can feel like an ending. But the more prepared you are for it, the more it can feel like the beginning of an exciting new phase of life.
If you want to step joyfully into this phase, answer the following questions. Take stock of where you are now, and think deeply about the possibilities life after retirement could hold.
1. Who am I now, and who will I be in life after retirement?
It’s common for people to find a strong sense of purpose in their work. It can become so central to how they see themselves that they don’t know who they are outside of it.
“For many people, their work offers them meaning and purpose in their lives. When their job is gone, it can be difficult to fill that gap with something else … Depression and sadness can emerge when this environment goes away.” – Iris Waichler, author of Role Reversal: How to Take Care of Yourself and Your Aging Parents
This is why it’s so important to take a personal inventory. You have value as a person whether or not you occupy your position at work, especially to your loved ones. Remind yourself of that. Start to envision what having a purpose might look like to you after retiring.
A related question is, who else is retiring? If your colleagues, friends, and particularly your spouse are heading into this phase of life, you won’t be alone on the journey. Talk to them about it. Start making plans to do post-retirement life together.
2. What will I do after retiring?
Many people set a goal to retire by a certain date, reach that goal, and only then realize they don’t quite know what to do next.
We all need to engage in meaningful activities or projects to feel fulfilled in life. What will yours be in life after retirement?
Here are a few options, some of which my clients have chosen to do:
- Continue to do a little paid work you find interesting, such as substitute teaching, working at a garden center, or consulting.
- Share your knowledge with the world by tutoring, writing a book or creating an online course.
- Volunteer by serving on a board or doing hands-on community service with your charity of choice.
- Become an entrepreneur and start a new business.
- Dedicate yourself to spending more time with family and friends, and find new ways to offer them your love and support.
Of course, there are many other ways to find new sources of meaning after exiting a career. It’s up to you to decide what you might want to pursue.
3. Where will I retire?
I’m getting this question more than I used to. Particularly since the pandemic, when remote work became the norm, more people began to realize they could finish out their careers and retire anywhere.
Still, there should be more to this question than financial considerations. It’s true that comparing income tax rates, property tax rates, and cost of living from state to state is important. Or, you may decide that living abroad will be the most affordable option.
But I always encourage my clients to consider other, equally important questions about the places where they envision doing life after retirement:
- Will I have access to quality healthcare as I age?
- Do the dominant political attitudes there vibe with my values?
- Do the area’s natural resources and climate match the lifestyle I want to have (beaches, mountains, etc.)?
- Will the available properties and pace of life match my personal preferences (city vs. country living)?
As a financial advisor, allow me to be the loudest voice telling you that money isn’t everything! It’s never best to choose affordability at the cost of your comfort, security, and happiness.
4. How is this going to work?
Of course, this is a financial decision. And there’s a great deal more to it than whether you’ve reached retirement age and can begin drawing Social Security benefits.
Retiring always involves a certain amount of risk. You’re closing off an income stream for the rest of your life, which means other financial supports have to be strong and built to last.
Preparation is everything. I encourage clients to go through an intensive process of assessing savings, investments, insurance coverages, etc., and create a detailed financial plan.
Then, we stress-test the plan by going through a number of what-ifs. Does this plan hold up if you come down with a sudden illness? Or a natural disaster wipes out your home?
The key takeaway here is this: by anticipating the potential pitfalls of life after retirement, we can make a sound plan that will protect your future and bring the possibilities to life.
5. Why is this the right time to retire?
By now, it should be clear that the question of “when?” is only the beginning of retirement planning. What matters far more is your why.
The questions above make up a kind of personal inventory. When you answer them honestly, you might discover reasons why you should not retire just yet. Or, you may find new meaning behind your chosen retirement date and recommit yourself to it.
I encourage clients not to wait longer than necessary to retire because I want them to enjoy it. Your chances of a joyful life after retirement are highest if you start while you’re relatively healthy and strong. That’s especially true if you’re an active person.
Your why may be something more specific. Maybe:
- You have new grandkids and you want to help your children with them, or
- You want to start a business before you turn a certain age, or
- You’re getting remarried and you want more time with your spouse.
Retirement is always more than a date on the calendar. It’s a commencement into an exciting new phase of life, and I want you to be as prepared and excited for it as possible!