MoneyMonday: What's Next? Spending Time in Retirement

If you’ve attended other sessions, you’ve been introduced to the three stages of financial wellness. If this is not familiar, plan to join an Intro to MoneyNav session offered at the beginning of every month. Or look for the Money Milestones course which explores these stages in detail.

This session is a Stage 3, Financial Freedom course. So, let’s get started.

What do you think of when you think of retirement? What will your typical day as a retiree look like?

We spend a lot of time planning for life events… from summer vacations to birthday parties. We think about retirement, especially during tough days at work, but are we really planning for the experience of it?

Many folks hesitate when it comes time to retire. I hear them say it’s about the money or about health insurance, but my experience has been it’s usually something less obvious that keeps us working. It’s the stuff you can’t quite put your finger on. It’s things like…

• What will it feel like to not be needed at work anymore?
• What will I do with myself all day?
• Will I miss the people and the routine of going to work?

In reality, it’s hard to retire. It’s hard to walk away from something we’ve known for a long time,

There are a lot of details to consider as you move toward the retirement finish line. Sometimes folks plan to retire but when it comes right down to it, they put it off and keep working. I’ve found that the number one reason folks delay or don’t enjoy retirement is that they didn’t spend enough time planning the details around how to spend their time when they aren’t punching the clock anymore.

Every day is Saturday. You’ve probably heard someone say this about retirement. My dad said it every day for a year after he retired. And I agree… the idea of shutting off my alarm clock for good and always having “another day off” sounds appealing. But, in time, this enthusiasm can wear off. And if you don’t plan for that, you might find yourself wishing you’d never stopped working.

One of the best things you can do in this last lap of your working career is to plan your time.

Is there a hobby you haven’t had enough time for? Maybe there are classes you’d like to take or competitions you could participate in. I have a client who took pastry classes just before she retired. She now competes in county fairs across the state.

Perhaps you want to spend more time with family or friends. Maybe you could get more involved in your church or help with childcare for grandchildren.

Maybe you will travel more. Spend the time now discovering resources that can make travel fun and easy. There are organizations that plan great trips for retirees. Find out about them now so you can dive right in when your working days are behind you.

Maybe you want to perfect a trade or learn a new subject. Find out what classes and programs are available near you. With a bit of effort, you’ll find everything from carpentry to gardening even classes on American History!

One of the best things you can do is to find out what volunteer opportunities exist in your community. This is a great way to put your lifetime of experience to work with the added bonus of being able to quit when you’ve had enough! All kidding aside, volunteering is a great way to stay socially connected. There’s also great benefit in the sense of usefulness that comes from giving back.

Hobbies, volunteering, traveling, and even part-time work can keep you busy in retirement. But it’s also important to think about how housing choices foster connection.

Let’s consider the answers to three simple questions…

• Who will change a lightbulb for you?
• How will you get an ice cream cone?
• And who will you meet for lunch?

What do these questions have to do with retirement planning? Actually, a lot more than you think. They uncover important factors that determine your future quality of life.

When it comes to retirement planning, we spend most of our time accumulating assets and making sure we’ll have enough money to fund our lifestyle. And, while the fear of outliving wealth is not unreasonable, there’s an even greater risk of…

• Losing your independence as your health declines,
• being unable to do the little things that bring you joy,
• and experiencing the loss of friendships and social connections.

Let’s start with our lightbulb question… think of a friend or family member in their 80s or 90s. Even if the person you are thinking of is in good shape, doesn’t it still make you nervous to think of them climbing up a ladder to change a lightbulb?

So, the question isn’t just about the simple and mundane task of changing a lightbulb. It’s a question about long-term housing maintenance. Do you have a plan for how you will maintain your home? Does that plan include the costs of getting the services you’ll need help with AND the trusted folks who will provide those services? As you probably know, finding help gets harder every day.

Now imagine it’s a hot August night… perfect for grabbing an ice cream cone. Quality of life means being able to experience those simple pleasures when you want. But being able to have that ice cream cone on your terms means having adequate transportation to go where you want when you want.

What if driving is no longer safe? Have you planned for alternatives that will enable you to continue experiencing those moments of joy? Or perhaps can you find a community or living environment that will have these “simple pleasure” activities organized for you?

Finally, who will you meet for lunch? Lunch is more than a meal, it’s an occasion. And having folks to meet for lunch means you have a healthy social network, and I don’t mean an online community. Getting together with others, in-person, and on a regular basis reinforces a healthy and active lifestyle.

Today, more than 40% of women over age 65 live alone. So, that home in the mountains that seems so alluring as you entered retirement might lead to social isolation and declining mental health as you get older, especially if you lose your spouse.

Don’t underestimate the extent to which staying connected can impact your quality of life in retirement. And, while it’s not fun to think of leaving your home, most folks who move to a retirement community wish they’d done it sooner. Retirement communities are set up to help you maintain a connection through gatherings like ice cream socials. They have services that help you get back and forth to important appointments. And they handle many of the burdens of maintaining your physical living environment. These things might give you more peace of mind and more time to do the things you really want to do.

And be sure to have these difficult conversations with loved ones before your situation becomes medically urgent. The sooner you transition, the stronger your social network and sense of community will grow.

So, the last piece of advice I offer you today is to “practice retirement.” Preparing for retirement can be like a real-life Jekyll and Hyde movie. One minute you’re planning a cross-country road trip and the next minute you’re figuring out who will get your stuff when you die. It’s simultaneously thrilling and nerve-wracking. But planning ahead and getting help from experts can take the edge off. You’ll have more confidence as you prepare for this exciting life transition.

Hobbies, community, friends, volunteering, and giving back… these things can be integral parts of making sure you’re prepared to LOVE being retired at least as much as you’ve prepared to pay for it.