By Maggie McCormick
When most people think of retirement planning, they think financial planning: pensions, 401K accounts, Social Security, other investments, and try to realistically match their available resources to projected living expenses. Financial planning is critical to supporting even basic needs in retirement, but there are many other non-financial decisions that help retirees make the most of this time of life.
Retirement planning is not a problem to be solved, but an opportunity created. Your needs and wants in early retirement will likely be different than in late retirement. You’ll want to build in flexibility and plan for the unexpected as well as the expected.
Many people want to rest for a while and do nothing after years meeting the daily demands of the workplace. It’s okay for plans to evolve and to take your time, but if you truly want to make the most of your retirement life, you’ll want to make informed and well thought-out decisions.
Being proactive helps ensure you can realize your retirement dreams. Are there plans you need to set in motion before you retire? For example, if you plan to have an encore career or start your own business, is there additional education or a certification you need to pursue?
In What Color is Your Parachute for Retirement? co-author John Nelson provides a comprehensive model for these critical decisions. He suggests a three-pronged approach, with each broad area of consideration subdivided into two components:
Prosperity
- Financial — Essential to achieving your goals for all the components of retirement planning, most people start with this, but may not plan beyond the money.
Geography — Where you will live? How will your home and community support your retirement lifestyle (whether or not you relocate)? What is the financial impact related to costs of living in your retirement location?
Health
- Practices — What habits (diet, exercise, sleep, stress management, environment) will help you maintain optimal health?
- Medical Access and Resources — What medical resources do you need? What will you need in the future? Where are they located? Are they accessible? What about health and LTC insurance?
Happiness
- Traits, Strengths, Values — Who are you? All the components of who you are impact how you spend your time, and your choices of work, hobbies, or volunteer efforts; they drive the contributions you make and the legacy you leave.
- Relationships — Your relationships will change when you retire. What happens if you and your spouse retire at the same time? At different times? Who retires first? How will your relationship change when you are both no longer working?
What about extended family, adult children, grandchildren, or elderly parents? Their needs and proximity to you, your own values, and your relationship with each of them will largely determine how your family relationships change after you retire. Anticipating and preparing for these changes will help you adapt in healthy ways.
You will likely have to be more intentional about maintaining relationships with your friends. “Social wellness” is more important than ever when you no longer have the daily interactions the workplace affords. Research confirms the critical role friendships play in the lives of older adults; it is vital that you nurture them, and that you engage with others.
Retirement offers a level of freedom you have not had since childhood, and with the added benefit of insight you have gained from a lifetime of experiences! This is a great opportunity for you to create a life that represents your “best self.” There are many considerations, beyond financial, for ensuring happiness and fulfillment in retirement. How will you make the most of this phase in your life?
Maggie McCormick holds credentials as a Licensed Professional Counselor and a National Certified Counselor with 20 years of experience in career development. She teaches several Continuing Education courses at Heartland Community College, including “Autumn Harvest: Cultivating Happiness & Meaning for Retirement,” “Changing Seasons: Navigating through Career Transitions, Parts 1 & 2,” and “For Better or Worse: Managing Career Decisions for Dual-Income Couples.” Free mini-sessions of these classes will be offered at Heartland Community College on Saturday, January 7, 2017. For more information contact Continuing Education at 309-268-8160 or visit their website at www.heartland.edu/continuingEd.