So, you think you want to retire
How many of us think about retirement, sometimes daily? In my mid-50s, I called my financial planner and asked the question, “Can I retire?” My question was regarding the finances of retirement and his answer was yes. However, he also cautioned me about retiring without a plan. In their article, “How to Retire Better, From Retirees Who Learned the Hardway” (Harvard Business Review, July 2, 2023) Veronica Dagner and Anne Tergesen advise that “Investing for retirement means more than money.” They reference a retiree who regretted not setting goals when he retired and later found there was only so much golf he could play and lunches he could go to. With this good advice, you can begin planning retirement.
Start by envisioning your future life. Do you want structure or to get up each day not knowing what that day brings? I am a planner and a list maker. I require structure to feel comfortable. Do you want to be active or prefer a more sedentary life? This will help direct the types of activities that you want to pursue. Are you an introvert or an extrovert? This will direct you to how much daily interaction you need to have with other people to be happy. After answering these basic questions consider the following.
1. What activities do you want to do more of or that you want to start? Make a list and start investigating now so that you know what you want. In my case, I wanted to expand my outdoor activities, so I started kayaking and hiking and found I liked both of them.
2. Where do you want to live? Make a list of what is important in a home and a community. This might be driven by the types of activities you want after retirement. My husband and I lived in a very large suburban house. We wanted to downsize, and did not want to move far, but wanted a walkable community.
3. How will you replace your work network and relationships? This is very important and might not happen easily without planning. I was leaving behind the daily interactions with work colleagues and knew I would be spending more time working from a home office on my new business. Before retiring, I joined two organizations with robust events and activities.
4. Ask yourself whether you want to completely leave the workforce or just do something different or on a reduced schedule. Retirement can mean retirement from a specific career but not leaving the workforce altogether. In my case, I started a life coaching business that partially fills my days. You may decide to continue with your profession but as a part-time contractor. You may also decide to volunteer.
How far in advance should you begin planning? You will need enough time to thoroughly answer these questions and begin to explore the answers. In my case, I started about 18 months before I left my career as a finance professional. Retirement is an opportunity to start a new life! With proper intention and planning your new life can be great!