As Financial Planners, we try to help you answer two key questions: “Will I make it?” and “Do I have any financial blind spots?” When defining their financial goals, most people’s primary focus often lies on achieving a comfortable retirement. However, the concept of “comfort” varies between individuals.
Within the financial planning profession, discussions frequently revolve around financial comfort. Transitioning out of the workforce, however, requires preparation in other areas as well. While financial preparedness for retirement is crucial, overlooking other key areas can lead to a lack of fulfillment during your golden years.
Experts emphasize that lifestyle planning is just as important as financial planning for achieving happiness in retirement. Retirement often means losing connections with longtime colleagues you shared valuable experiences with throughout your career. On top of that, there are significant questions about how to fill weekdays once spent at the office, as well as a more present need to confront one’s own mortality and the challenges that come with aging.
People tend to significantly overestimate their ability to transition smoothly and happily into retirement. However, those who engage in proper pre-retirement planning are often able to find enjoyment and meaning in their golden years. Three retirement blind spots are lost connections, health, and purpose.[1]
Lost connections are often overlooked when planning for retirement. When people leave the workforce, they prepare for losing that paycheck. However, they don’t often consider they will be losing the social aspect of their careers as well.
It’s important to plan for replacing lost relationships in retirement, as socializing helps to improve quality of life in old age. Studies have also shown that regular social activities may decrease the risk of Alzheimer's disease and other forms of dementia.[2]
Staying active in retirement is also important, considering even the healthiest person can expect some litany of ailments in retirement. Actively prioritizing ways to stay fit as an aging adult are deeply important to retirement happiness.
The Centers for Disease Control (CDC) reported that most people do not engage in enough physical activity once they retire. According to the CDC, 50 percent of women and approximately 33 percent of men get no exercise at all after retirement.[3]
As the body changes and ages, it’s important to adapt exercise routines accordingly, whether that means going for long walks or staying active with sports like tennis or pickleball.
Establishing a sense of purpose later in life is also a key part of maintaining a healthy lifestyle. It is important to be more intentional about building relationships with people who will still be there after leaving the workplace.
Get involved in social organizations or charities. Maybe call someone you haven’t talked to in a while and see if they want to go play a round of golf or have lunch together. Before they retire, many people associate their purpose with work and family. When retiring, it’s important to find a meaningful outlet to devote yourself to.
When you have a financial plan in place, most of the work is already complete to help answer those two key questions from earlier. Replacing or reconnecting with lost connections and establishing a sense of purpose in retirement can help provide a sense of fulfillment and happiness.
Please don’t hesitate to reach out to your Sentinel Financial Planner for assistance planning for retirement.
Financial planning and investment advisory services are offered through Sentinel Pension Advisors, Inc., an SEC registered investment advisor.
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