By Jason Print, CFP®
Co-CEO
This may sound funny coming from a person who works in finance, but there is much more to retirement than money. Not that money isn’t important – it certainly is. Therefore, we highly recommend planning for future expenses, determining the best place to draw funds from to cover them, thinking about goals that require money to achieve, and putting together a plan to give yourself a high probability of achieving those goals.
Finances are just one piece of the puzzle of successful retirement. It’s equally important (maybe even more so) to think about what you will do with your time. I definitely don’t recommend going from working 40 hours a week to spending eight hours a day scrolling on social media and watching the news! That’s not a good recipe for successful retirement.
This has nothing to do with money; it’s about having a fulfilling life. When most people start thinking about retirement, they immediately focus on money. Understandably so and not a bad place to start. We all need money to live, so spending some time thinking about how much you need and what kind of lifestyle you can afford is a great starting point.
However, that’s not the end. Money can provide financial freedom and give you options, time, and comfort. That said, it cannot provide meaning, connection, or a sense of self. Retirement is as much about emotional and psychological preparation as it is about financial readiness.
If you take away your job, who are you?
Some retirees struggle with this transition, especially if they haven’t cultivated interests or roles outside of their careers. It’s important to think about how you’ll define yourself in this next phase of life. Will you be a volunteer, a mentor, a grandparent, a creator, or an adventurer? Finding purpose in retirement – through hobbies, relationships, or community service – can be even more important to your well-being than financial security.
As Bill Perkins often notes, it’s OK, even recommended, to be a newbie again. Put yourself in uncomfortable situations or in a new environment. This isn’t always easy, but it is a path to learning and growth. It’s the learning that will keep you young and fulfilled. Many of us have been in a career for decades. We know the job and the industry, and there’s comfort in that familiarity. There’s also a sense of accomplishment that comes from completing tasks. It is often extremely fulfilling. Now, we have to find that fulfillment elsewhere.
A new routine
Your working years may have been defined by a 5 a.m. alarm and a full calendar. This provided structure and a routine. Nothing wrong with taking a short break from this as retirement gives you a clean slate. Ultimately, though, it’s about finding a new routine. Maybe you exercise in the mornings now and volunteer in the afternoon. Having a flexible but meaningful routine is a great way to avoid the restlessness and boredom that may come from not having a full to-do list when you wake up.
Health: One of our most important assets
Retirement offers you an opportunity to focus on your health in a way that busy work schedules may have previously prevented. This could include regular exercise, cooking healthy meals, managing chronic conditions, and maintaining preventive care.
You may have visions of climbing Machu Picchu in your retirement, which is terrific, but you need to be in good physical shape to make that a reality.
There’s also the mental health side of the equation. For many of us, our social circle was largely built around our workplace. It’s essential to actively invest in relationships, seek out new friendships, and engage in activities that bring joy and connection. It’s been amazing to see clients who once didn’t even know who their neighbors were become social butterflies in their communities. Staying connected helps you feel seen, valued, and supported, and that matters just as much as your pension.
Retirement shouldn’t mean the end of growth and learning. I’ve been fortunate to work with clients who have transitioned into retirement, picked up an instrument for the first time in decades and experienced the joy from re-learning.
I’ve watched others get energized by being involved in local charities and volunteering.
Many retirees report that the ability to pursue passions without financial pressure or time constraints is one of the greatest joys of this life stage. Staying curious and mentally active contributes significantly to overall satisfaction with life.
Of course, good financial planning lays the foundation for a stable retirement. However, you can delegate much of that to a comprehensive financial planner, who is a fiduciary and obligated to work in your best interest. The fun stuff that will really allow you to make the most of your next chapter is focusing on:
- Personal experiences, or non-financial goals
- A strategy to optimize your physical and mental health
- Social scene: What relationships will you nurture?
- Purpose: Where will you find meaning and fulfillment?
