Estimated reading time: 5 minutes
Appa was not prepared
My father was a quiet and thoughtful man, devoted to his family and work. An intellectual, deep thinker, and avid reader with a serious bent, he had no interest in socializing and had no friends apart from a handful he’d made over the decades. His work, family, and books were all he wanted. He was passionate about his work and excelled at what he did. He strove to do the best he could for his children, giving us the finest education we could get, and provided for a comfortable retirement for my mother and himself.
When he retired at the age of 71, Appa found himself at a complete loss. Without his work, life seemed like a vacuum. I believe he went into depression. Cognitive decline soon followed, and he passed away less than four years into retirement. My Appa and Amma never got to enjoy their retirement years.
Why do we retire?
“People decide to retire for various reasons,” a friend of mine said the other day when we were discussing her retirement plans, “They’ve had enough of work. Maybe they are burnt out. They’ve saved enough to live comfortably the rest of their lives. Whatever the reason, they take this big step in their lives. However, most have not thought carefully about what happens next.”
The first month or two into retirement feel great. You don’t have to get up and go to work every day. You feel you can do what you want. Life does not feel like drudgery. “There will soon come a time when you begin to feel a void,” my friend continued, “You’ll get stir crazy at home, and feel like you are losing your sanity. Begin to feel useless and lose your self-worth. Depression will set in. I’m five or ten years from retirement, and I want to make sure I don’t put myself in that situation.”
An unfortunate reality
Before we delve into this further, it’s necessary to acknowledge a grim, unfortunate reality: for many, retirement is just an elusive dream. About one in four Americans over 50 expect they will never be able to retire. An AARP survey cited rising living costs, low savings, and increasing healthcare expenses as the main reasons. Financial fragility made it difficult for these survey respondents to make ends meet month to month, let alone save for the future.
The study noted that one-quarter of Americans have no retirement savings, and many approaching retirement age have minimal assets. Medical expenses in retirement are a major concern; they can be unpredictable, especially for those with chronic health issues. Some people may underestimate how long they will live, increasing the risk of outliving their savings. Longevity risk is one of the biggest retirement concerns, especially for those in good health who could live 20 to 30 years after retirement. They see no option other than continuing to work.
Planning for retirement
The fortunate among us who are able to retire typically don’t plan for aging and retirement the way they should. Retirement planning guides and expert advisers are easy to find. All of them emphasize financial planning, maximizing and protecting savings, health-care and long-term care needs, sources of retirement income, budgeting, legacy and estate planning. The better guides also address non-financial considerations. Where do you want to retire? Will you travel? Do you have any special lifestyle plans?
Only the select few also urge the inclusion of an individual’s emotional, psychological, and social makeup as an essential part of retirement planning. How will you feel giving up a way of life that you’ve led for decades? This question must be addressed and discussed thoroughly by individuals and couples contemplating retirement. Can you successfully navigate the loss of identity that will likely follow retirement? Can you acknowledge the change? Are you able to redefine your purpose? Will you need help managing the emotional stages – from the initial ‘honeymoon phase’ through disillusionment, to enjoyment, satisfaction, and contentment?
Flying lessons
“What are the things you wanted to do ten or twenty years ago that you never got to do?” my friend asked rhetorically; “what do you think will make you feel like life is really worth living after you retire?” She thinks it is essential to build a framework for retirement that enables you to do the things that will give you satisfaction. “Does your budget allow you to take the flying lessons you’ve dreamed of?” she asked.
Such questions are unique for each of us, and we have to address them. “Right now, I think I want to do something with animals. You know how much I love animals. But what is that something with animals that will fill my days and months with satisfaction? I don’t know yet.” She hopes to have her plans figured out well before she retires. We all should; it cannot be an afterthought to be picked up after retirement. Where you will live in retirement also matters – consider the impact of location on your community, your environment, and your health, in addition to how it will affect your finances.
Retirement planners typically project retirement needs based on current spending profile and lifestyle, and other expected changes in retirement. Perhaps my friend will need less money to retire well if her plan involves animals in a rural area. A plan for contingencies is also important. Health or other issues may constrain what you can do on the one hand, or make unanticipated financial demands on the other.
Lifespan vs healthspan
Another essential component of every good retirement plan is a focus on maintaining good health, now, and in the future. A longer life in retirement is a true gift to yourself if it’s also a healthier one. That’s why more attention is shifting from lifespan to healthspan: the number of years we can live with vitality, purpose, and independence.
Age as an opportunity
Look at age and retirement as an opportunity and not a problem, urges Ximena Abogabir, the co-founder of Travesía100, a Chilean organization dedicated to changing attitudes about aging. “People who retire and say that’s it and just sit tend to get depressed,” she says. “This is the moment that you do whatever you think you were born to do.” What makes you wake up in the morning with enthusiasm, she asks. “This is a wonderful period in your life.”