We may spend up to a third of our life in retirement. It’s been said that we are currently in a retirement tsunami (10,000 baby boomers retiring each day for the next 10-15 years). And realistically, we all eventually realize that there are the Go-Go years, the Slow-Go years, and then the No-Go years.
To me, those are pretty sobering facts that emphasize the importance of thinking ahead and being intentional about retirement, both before and during retirement. Helping and observing different people evolve through this season we call “retirement” over the past 20+ years, has been an interesting journey.
It’s been reported for years that the typical American starts seriously thinking about retirement around age 55. Having passed that milestone myself, I can agree that it certainly becomes more top of mind, but I do believe folks these days are much more aware and taking action sooner than age 55.
A Retirement To-Do Checklist
I recently completed my Life Stage Money Checklist bundle with the most difficult one for me to write, Retirement. I found it to be the most difficult because it is a phase of life that we have worked up to over many years and is much more complicated than other phases of life. It must consider not only the money side but also the values and relationship side of life.
The Before and After checklist has 10 To-Do steps with articles and checklists for preparing for retirement (BEFORE) and then 10 more for enjoying a secure, comprehensive, and intentional retirement (AFTER). Let me share a couple of the themes that are covered in the spirit of helping you ponder, plan, or perhaps reminisce about your own current place in the retirement phase.
What Will You Retire TO?
Author Stephen Covey was really onto something when he started to write about beginning with the end in mind. And retirement planning is a great example of the importance of that. If you don’t envision what you want that time in life to look like, you can’t plan accordingly. So starting by answering questions about what you want to do with your time, where you want to live, what relationships you look forward to, etc. helps you visualize living in retirement more clearly.
My Before and After Retirement to-do checklist, for example, offers questions along those lines, reminds you to include socializing and exercising in those decisions, and of course, provides tools to estimate the cost side of those goals. I always tell new retirees that this is a work in progress since you likely have not been retired before, and it often takes two years to confirm your estimated vs actual spending ballpark. Did you guesstimate correctly or are you way off? And what can be done if you are way off? Some calculators and formulas can help you estimate BEFORE and then adjust AFTER retirement begins.
I cannot stress enough the vital importance of a healthy diet, regular exercise, meaningful social connections, and a sense of purpose. That saying “motion is lotion” oversimplifies that point but accurately reminds us that blood flow is the superpower for maintaining brain and body health. Making healthy choices in all of those areas will financially cost you less in the long run. Not to mention enhance your happiness factor throughout.
What About Those “What Ifs”?
Ok, so what about the Worry List, the things that are normal to fear in retirement, i.e., premature death, disability or incapacity, needing long-term care, significant stock market decline, etc? Those are legitimate worries as we all know someone who experienced each of those situations. Now is the time, in advance, before you are in crisis mode and your brain does not think as clearly, to consider your options and make some decisions you can act on now.
My Before and After Retirement checklist, for example, walks through various potential insurance needs. Asking yourself “What would I do if this happened to me?” is your best starting point. Your situation is different than anyone else’s so your answers are likely also very different.
If you lost a spouse, where would you want to live? Would you downsize and rent, go live with a friend/sister, or stay where you are? If you need short or long-term care, are there friends/family you could rely on, or a rehab or assisted living place you would prefer, or are you familiar with a home care agency/caregivers?
Or what about market volatility and the running out of money worry? The checklist provides resources to think about what if the stock market went down 30%, would you choose to spend differently, adjust your allocation, reduce your expenses, do nothing? And how about investment allocations and spending down during retirement? A Rollover Considerations Checklist, research, and guidelines provide food for thought.
Awareness and thinking about these aspects of life is the starting point. But nothing is solved if you don’t take action. (And my checklists are 50% off this month if you are looking for a tool to help you.) I encourage you to destress your retirement by turning your Worry List into a To-Do List.
Let’s Have a Conversation:
What are your feelings or experiences with retirement? Is there anything you are still changing/evolving? What worries you most? Let’s have a discussion!
