| More Than Money Matters: Advice from Retirees About Planning for Life in Retirement Dr Susan Hutchinson, PhD (CTRS), Associate Professor School of Health and Human Performance Dalhousie University [email protected] What was your greatest fear or most challenging issue when you retired and, based on this, what advice do you have for other retirees? These were two of the questions I wanted to ask people who had already made the transition to retirement. I had led several workshops on the psychology of retirement for the Retirement Planning Institute (RPI). A recurring theme amongst some of these participants—who were weeks to years away from retiring—was that it was most important to plan for financial security in retirement and that, with money, everyday living would take care of itself. Although there has been a lot of research on people’s satisfaction with life after retiring, I noticed that there was very little research on what people do to plan or prepare for their retirement lifestyle. So…I decided to conduct a study (using an online survey) to look at planning-related tasks associated with retirement and how these impacted feelings of preparedness for and satisfaction with the retirement transition.The majority of people who responded to the survey were from across Canada (n = 748), female (68%), white (97%), and fully retired (67%). Under half (42%) indicated having done some form of retirement lifestyle planning. According to the statistics, people who reported financial planning felt more prepared for retirement, but lifestyle planning was a stronger predictor of retirement satisfaction. Although statistics tell part of the story, it is interesting to see what people wrote in response to open-ended questions. For example, when asked about retirement goals, overwhelmingly people commented on wanting to have more time for pursuits that matter to them:“To spend more time enjoying my life.”“To be able to do the things I want to do as well as the things that I never had time for.” A multitude of different examples were provided, many of which included spending more time with family, traveling, or pursuing leisure-based projects:“To still continue part time, travel, go to gym, library, socialize with friends, babysit grandchildren.”“More time to do hobbies like camping, hiking, and travelling.”When asked about their fears or challenges going into retirement, it was great to see that many people responded that they were ready for retirement or had no fears. As an example:“I didn’t have any fears. I felt it was time for me to make a change, and that I could still contribute to society in other ways without going to work every day.” Most fears identified were related to finances; however, the majority of respondents indicated that these fears proved to be, for the most part, unfounded after they had retired. As examples:“Finances were my worry however I’m fine.” “Having enough money to live comfortably [was their greatest fear]” and added “No, they did not come true. I just lived within my means.”The other most frequently identified fears were related to everyday living, including fearing boredom, and lack of routines or meaningful activities or social connections:“I created new relationships involved in the arts. Did the fear come true? Yes, but in a good way.” As it relates to advice to others contemplating retiring, some survey respondents did advise to “just do it” or not wait:“Just jump in and do it. Working an extra year or two will not change your finances.”Of those who advised planning, the majority of advice was oriented around the idea that financial planning is important but not sufficient and that lifestyle planning is just as important. As an example:“Lifestyle is important. We tend to focus all our energies on financial matters prior to retirement and not enough on the impact on lifestyle.” Specifically, respondents recommended that people begin planning early, and have a plan for time use, including meaningful hobbies/work and ‘bucket list’ activities like travel. As examples:“Prepare for retirement by planning in advance (about five years out): activities, hobbies, interests and skill sets.”“Create a lifestyle plan, explore health and fitness options, volunteer opportunities, create new social networks…” “Make sure you have hobbies that you find fulfilling. Make sure it’s more than one! Include things you do on your own, with a partner as well as with friends. Challenge yourself. Try something you’ve never done before. It’s so easy now to learn something even do it online.” “Have an outline of what you want to do…. Accomplish something everyday, even if it is small. Take time and see what you have been missing, e.g., the beauty of your community. Doing something special for those ppl [people] important in your life. Stop and smell the roses!” While respondents encouraged reconnecting with friends and family in preparation for retiring, they also recommended that people create ‘boundaries’ to ensure they are not burdened by family obligations:“Take time for yourself, don’t let people take over your free time ‘cause your not working.” Finally, many people advised that people contemplating retirement should learn about it by taking part in retirement planning courses and by ‘testing the waters’ or easing into retirement: “I would gradually move into retirement if possible and use the extra time to meet like-minded people and activities you enjoy.” How much can we trust these results? Due to the nature of recruitment methods used (e.g., through RPI’s newsletter and other retirement websites), it could have been that more of the ‘believers’ in the value of lifestyle planning completed the survey. It would be interesting to see if there would be similar results if the survey was done in partnership with a wealth management organization or financial planners. Nonetheless, as someone who has believed in the power of leisure for all aspects of health and wellbeing, these retirees have convinced me that it is important to help people prepare for their time use, in addition to finances, when planning for life in retirement. Clearly the Retirement Planning Institute knew what it was doing by offering the ‘psychology of retirement’ in their seminars! In addition to reviewing your financial statements, I encourage you to go back to review the notes from this workshop.If you participated in my study, I would like to take this opportunity to thank you for your participation! For more in-depth results from this study, you can reach out to: [email protected]. Also, if you want access to lifestyle planning tools and resources, then check out Dr. Sue’s ‘The Retired You’ website: https://www.retiredyou.com/resourcesDr Susan Hutchinson, PhD (CTRS), Associate Professor School of Health and Human Performance Dalhousie University [email protected] |
Source: Reflections RPI Newsletter