Take 2 of these and call me in the morning.
Retirement is something that our culture aspires to and dreams about. The vision of trading in your 9 to 5 (or longer) workdays for days on the beach or golf course is a pie in the sky ideal for many.
Unfortunately, most Americans spend more time planning their annual vacation than a 30-year retirement, both financially and emotionally. This can lead to a painful “retirement hangover” after you leave the workforce. The consequences of which can be severe:
- Loss of Social Connections
- Diminishing Returns on Leisure
- Loss of Intellectual Challenges leading to accelerated mental decline
- Substance Abuse
- Marital Strain or Divorce
The New Retirementality
At the NAPFA Conference, Mike, Will, and I participated in a Retirement Coaching Session with Mitch Anthony, author of “The New Retirementality.” The ideas presented were enlightening and shifted the focus of retirement discussions. One of the main premises of the book is that ages 60, 62, or 65 are an artificial finish line. Waiting until you achieve a certain age and level of Net Worth to start enjoying life is a flawed assumption. In financial and life planning we should ask ourselves two questions:
- How are you going to spend your time?
- How are you going to pay for it?
We should retire the notion that workers of a certain age are no longer valuable in their professions and acknowledge the benefits of work other than money. Mitch Anthony defines work as any activity that “brings value to others and meaning to me.” Too often we view work as simply a means to an end and ignore the emotional, social, and physical benefits. When we look at it in this context, it makes sense how removing work from your life can lead to the negative consequences mentioned above.
Preventing a Retirement Hangover
One of my favorite quotes from the book is, “those who lack a vocation will always seek a vacation.” If you find your work meaningless, then retirement will logically seem like the light at the end of the tunnel. Mitch cautions against taking this leap without careful consideration. If a lack of work/life balance is the issue, then it may be beneficial to consider a sabbatical, career change, or schedule adjustment. This can be done at any age.
When contemplating retirement, it is important to think about how you will fill your days. That may mean working part time, volunteering with a cause you are passionate about, taking up a new hobby or spending more time with family. Be realistic about how many hours you plan to spend on each activity. Talk to others who have retired and find out what have been their successes and challenges. Find a “retirementor” to coach you through this transition.
As financial planners, our focus has traditionally been on the affordability factor in retirement planning. This remains a crucial component. The key is to create a balance of time and money that meets your unique needs. If you have questions about striking this balance in your life, please contact us today.
Copyright: alkov / 123RF Stock Photo
