Retirement Planning Beyond the Numbers

Years ago, a major international financial services company ran a retirement ad campaign called “What’s Your Number?” The ad featured people walking around with a number floating above their heads, representing the balance in their 401(k). While the campaign certainly helped raise awareness about the importance of participating in a qualified plan, it overlooked the complexities and key factors of retirement planning that exist beyond the numbers.

Planning for a successful and fulfilling retirement goes beyond solving a math problem. The psychological and emotional transitions to retirement are just as important as the financial ones.

With that in mind, here are some key factors of retirement to consider beyond the numbers.

Lifestyle Vision

Visualize your ideal retirement lifestyle. Create as clear a picture as you can, and have fun painting it. We often only get one shot at this, so enjoy the journey.

• Consider your passions, hobbies, and travel aspirations. What activities do you want to pursue?
• Where do you want to live?
• How are you going to fill the 40+ hours a week spent at the office? Use that time for activities that bring you joy.

Social Connections

Retirement can sometimes lead to social isolation. To stay connected and maintain a sense of purpose, participate in social activities. One of our core needs as human beings is to connect with others.

• Join clubs
• Volunteer
• Part-time consulting in your field of work can keep you connected with former colleagues.
• Become comfortable with technology. Social media and video calls can bring you closer to your loved ones, helping you maintain strong connections, even from a distance.

Emotional Preparation

Retirement can bring significant life changes, both exciting and challenging. As you transition from a structured work life to a more flexible schedule, it’s important to mentally prepare and create a new routine to maintain balance in your week.

• Some individuals experience a loss of identity or purpose after retiring, so having hobbies or part-time work can provide fulfillment and maintain your sense of identity.
• Consider meditation. Take time to reflect each day and focus on 10 good or positive things that happened that day.

Legal and Estate Planning

When planning for retirement, it's crucial to address legal and estate considerations to ensure everything is in order. Here are some key steps to prioritize:

• Ensure your will, power of attorney, and other legal documents are up to date
• Make sure your Durable Power of Attorney and Healthcare Directives are up to date
• Review your beneficiaries on all your retirement accounts

Health Care

Taking care of your health becomes increasingly important as you age.

• Ensure you have adequate health insurance coverage and long-term care options
• The best health care coverage comes in the form of a good diet and regular exercise. It’s also the most cost effective.
• Learn how to cook with fresh ingredients. Not only can cooking be a fun hobby, but it also has tangible health benefits. Home-cooked meals with fresh ingredients are a healthier choice than pre-packaged food.

Continued Learning

Retirement doesn't mean the end of learning, rather the beginning of the next chapter in your learning journey. Here are some ideas to keep your mind engaged and active:

• Study a new language
• Take community education classes in topics that interest you
• Learn how to play a musical instrument
• Join a book club

Legacy and Giving Back

Consider how you want to leave a legacy or give back to society. Some options to explore:

• Make charitable donations
• Mentor others
• Pass down wisdom and experiences to younger generations
• Teach a community education class
• Volunteer at a local school

Enjoying the Journey

Retirement is a time to savor life's moments and enjoy the freedom you've worked hard to achieve. Take time to appreciate the achievements and experiences that have led you to this stage.

Concluding Thoughts

We need to change the fundamental way we think about retirement. In fact, can we discontinue the word “retirement” altogether?

One of the definitions in Webster’s Dictionary for retirement is “to put out of use.” I don’t know about you, but that doesn’t sound appealing at all. How about we consider the idea of our “desire-ment” years instead – a time in people’s lives filled with the things they desire. That sounds more appealing, doesn’t it?