How to Thrive in Retirement
My wife and I know a couple who are the parents of some friends of mine. When we look at them, we’re amazed at their retirement life. It’s clear they know how to thrive in retirement.
Not only were they successful in their careers as a physician and a nurse, but they are also 100% winning at retirement. They flourish individually and together despite losing one of their children who had a disability and passed away.
This couple is in their late 70s, early 80s and still healthy. They take vacations, go hiking, and spend time with their daughter and grandchildren. They are the perfect example of doing retirement right by knowing how to thrive in retirement.
We’re all familiar with stories of retirement going poorly. I’ve encountered many people who are afraid to retire because they’ve seen family members or friends pass away soon after retiring. You may know someone who seems miserable in retirement, which can affect your idea of what retiring looks like.
You don’t want to find yourself in a situation where you’ve worked, saved, and sacrificed your entire life to retire in your mid-60s and not have the retirement life you expected. How can you make sure you are prepared to thrive in retirement?
Start With Your Mind
Planning for retirement is typically focused on the financial aspect. It’s vital to be sure. However, don’t overlook the mental aspect of retirement.
- What are your ideas about retirement?
- How do you feel about it?
- How do these things tie into your retirement reality?
Dr. Michael Finke has done quite a bit of research on happiness in retirement. In a recent presentation, I had the pleasure of listening to him discuss three key things his research has uncovered to help people thrive in retirement.
Health
It’s no surprise that health is one of the three elements of happiness in retirement. Good health is a baseline that everyone strives for. However, it is not always in our control. Unfortunate things do happen, such as cancer, stroke, or any number of other things that can be a detriment to your health. These things can impact not only your working years but also your retirement years.
Physical Health
Health should always be a priority; however, spending time investing in your health will pay off as you begin to near retirement. Eating healthy and exercising brings several benefits.
- Physical health to do the things you want to in retirement
- Increased energy and lower risk for lifestyle-related health concerns
- Helping you feel good about yourself
Mental Health
Physical health is important, but you also want to keep your mind sharp. Keep your mind active and engaged by
- Doing cognitive exercises like puzzles
- Learning something new
- Socializing
Relationships
We are social beings. We’re wired to connect with other people. Even introverts like me need social connections. Everyone wants deep and meaningful relationships. It’s a deep seeded desire that’s part of us.
There can be some partitioning between men and women when it comes to retiring. Based on averages, women are naturally better at creating relationships. I’m not saying men can’t develop relationships. It just comes more naturally to women in most cases.
Because of this, women have relationships tied to work, outside of work, and in various facets of life. They can often maintain those relationships to help them thrive in retirement. Men usually have the majority of their relationships tied to work.
If you are a man starting to think about retirement, it’s paramount to create relationships outside of work. Having social interactions outside work and your spousal relationship can help alleviate the alienation men tend to feel more frequently after retirement.
A great spousal relationship certainly has a significant impact on happiness in retirement. Still, it’s essential to have relationships with friends outside of that. Dr. Finke’s research found that husbands may heavily depend on their wives for social interaction.
What’s also interesting is that he said children have less of an impact on happiness in retirement. Even more interesting is his statement that the closer children live, the less happy people are in retirement.
Again, this information is from years of outside research and may or not reflect your experience. The point is – relationships matter. Having strong ones will be vital to helping you thrive in retirement.
Secure Income
Having a secure income is the third aspect Dr. Finke mentions. What researchers found was that people who retire with a pension ended up being happier than those without. Why would this matter? If you have a pension, it gives a little relief knowing that a set amount of income is coming every month for the rest of your life or whatever term your pension specifies.
Often, those retiring with some assets have a “saving mindset.” They’ve been sacrificing and saving their whole life to put money away to retire. Once they do, they still have that mindset of saving. This leads them to avoid spending money.
The “saving mindset” can be a hindrance to being able to thrive in retirement. This is the time when you spend the money. Isn’t the primary reason for sacrificing and saving to be able to support the retirement life you desire?
Pensions have begun to go the way of the dinosaur. Only some people have access to a pension which creates a challenge on how to generate secure income if you don’t. There are many different strategies to use your saved assets to create a secure income. We can dive into some of those another day.
Creating secure income to cover your needs and baseline expenses is the goal. A secure income of as low as $10,000 a year is enough to increase happiness throughout retirement significantly. Social Security will cover some of it.
To thrive in retirement, you want to feel safe and secure in your living arrangements. Knowing your baseline expenses and finding secure income streams to support them is a big part of learning how to thrive in retirement.
Purpose
We’ve discussed Dr. Finke’s top three findings, but there is one more I advise my clients also to consider. What’s your purpose or objective?
By purpose, I don’t necessarily mean goals. Sure, you may have some plans when it comes to retirement, like traveling, exploring a hobby, reading more, etc. We’re talking about having an objective to wake up to in the morning.
Once you’re no longer working, time can just exist. When you have no way to fill it, you can begin to lose your sense of purpose, affecting your happiness. Look for ways to help others or spend your time and money doing what you enjoy. Some ideas include
- Going to the theater
- Working on a vintage car
- Starting a garden
- Volunteering
- Working a few hours a week with a nonprofit or charity
There are endless things that bring people passion and joy. You’ve only been given so much time. Don’t spend your hard-earned retirement sitting around watching TV all day. If you enjoy it, there’s nothing wrong with TV, but there is so much more to life. Those who choose to fully live it have a much better retirement experience.
Find Ways to Thrive
Financial planning is essential, but retirement is about more than just money. Don’t stay fixated on finances as you think about your retirement planning. Step outside the financial realm and find ways to have fulfilling moments that bring you purpose. Doing so helps keep your mind sharp, strengthens and builds relationships, and enables you to thrive in retirement.
Need some guidance from an experienced financial planner who looks at the big picture? I’m happy to help.
Important Information
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