17 Jul 2024 A Different Kind Of Retirement Plan
I recently read an article on the Psychology Today website titled “I Just Retired. Why Am I Unhappy?” by Katherine King, Psy.D. In her piece, Dr. King discusses how transitioning into retirement can be emotionally challenging due to factors such as boredom, loneliness, and unmet expectations. She explains that many retirees miss aspects of their previous work life, even if they didn’t particularly enjoy their jobs. As a psychologist working with older adults, King notes that the romanticized view of retirement—riding off into the sunset with a smile—is not the reality for some. Emotional turbulence is common, manifesting as sadness, grief, or even fear about this major life transition.
As a financial advisor, I’ve spent much of my career creating financial plans for clients who aim to retire someday. While addressing the financial aspects of retirement is imperative, creating a plan to tackle the emotional challenges of this significant transition is equally crucial. As Dr. King suggests, reflecting on what aspects of work provided emotional sustenance—whether it was social interaction, a sense of purpose, or structured routines—and finding ways to meet those needs post-retirement is vital. Some retirees experience a period of malaise once the initial novelty of retirement wears off, while others over-schedule activities, which can be equally unsustainable. A balanced approach involves identifying enjoyable elements of work life and seeking new opportunities to fulfill those needs through hobbies, social engagements, or community involvement.
Lately, I’ve been thinking and writing, here, here and here, about the importance of incorporating alternative investments into our retirement portfolios. Not the kind of alternative investments made by the Yale Endowment or ultra-high net worth family offices, but investments in our health and relationships, which are strong predictors of satisfaction and happiness during retirement. Dr. King’s article has encouraged me to keep considering these types of investments within the context of a bigger picture plan for my own non-working years. At the end of her article, Dr. King writes, “My happiest retired clients have been the ones who created a plan then held it loosely so they could be responsive to their own changing needs, obligations, and unexpected opportunities.” This flexible approach is not surprising and aligns well with the emotional, and financial, aspects achieving a fulfilling retirement.
At Beacon, our mission is to “provide real planning, sensible investing, and meaningful advice, so money can be a blessing.” The blessing part often means different things to different people, but for it to be fully realized, the conversation often extends beyond the dollars and cents. Let us know if you’d like to chat.
