This is a question that we try to ask all our clients who are gearing up for retirement. You would be surprised how many times we hear an answer along the lines of “I haven’t really thought about it”. We spend roughly 2/3rds of our lives working, saving, and investing for the day that we stop working. So, it is no surprise that people are more interested in asking the question “can I retire?”. Well, we believe that retirement planning is more than numbers on a spread sheet that tell us yes or no. The how is certainly an important part but, we also want to know about the what and the why.
So…what does your retirement look like?
This is always a sore subject, because who in their right mind dreams of working in retirement? Well, research shows that there is more to working part-time in retirement than just some additional income. According the The Journal of Financial Planning, “Even those not needing the additional income might find that their happiness and life satisfaction increases simply by being around others and being needed, particularly if the job requires significantly less stress and responsibilities than their pre-retirement careers did during their prime working years”.
We know it can be tough to go from working in a full-time career to doing absolutely nothing in retirement. Sometimes, it helps to transition to part-time work first whether it is with the same company or somewhere completely different.
This is possibly the number one “dream” we hear from soon-to-be retirees (at least before Covid-19). Retirement gives us the opportunity to travel without the stress of taking off from work. However, just like with everything else financial traveling requires planning. Consider the where, when, and how you will travel and figure out the costs. It can even help discussing your travel plans with your financial advisor as they can help you fit your plans into your overall retirement budget.
Research shows that social isolation negatively impacts retirees, and has been associated with general poor health, high blood pressure, and immune dysfunction, as well as increased risk for chronic illness, premature death, and cognitive dysfunction. So, planning to include some sort of regular social activities into your retired life will be key to your happiness—and your longevity. Some social activities include:
- Joining a club
- Spending time with family
While not everyone’s retirement will look the same it is important that we all plan for the one that we want. At Blue Bell PWM we know there is more to retirement planning than just making sure the numbers work. We wish to help our clients enjoy the retirement of their dreams. So…
What does retirement look like to you?