When it comes to retirement planning, we tend to think of it in terms of financial planning: retirement savings, net worth, and investments.
But what you might not realize is that planning for retirement is much more complex than just being financially prepared.
When you think about it, there are really two forms of spending in retirement – spending time, and spending money. Therefore a holistic retirement plan needs to address lifestyle planning alongside more traditional financial planning.
So, although you have likely put a lot of consideration and planning into your retirement savings, there is much more you can be doing to improve your retirement outcomes. It is important to approach retirement with the understanding that the financial piece is just one factor in your overall retirement plan.
In fact, there are 15 factors* that will determine your retirement success, and only one of them has anything to do with finances:
- How to manage the identity shift from your work identity to a new one
- Establishing a positive attitude toward retirement
- Directedness – The ability to set your own course
- How healthy you feel, how to prioritize health and wellbeing in your retirement years
- Current happiness
- Expected happiness in retirement
- Sense of purpose
- Activities and leisure interests
- Adaptability
- How much you live in the ‘now’
- Family – how much your parents/children/grandchildren depend on you
- Quality of your relationships
- How young you feel
- The ability to replace the benefits you get from your work
*Source: Richard P. Johnson, Ph.D
And despite the media’s portrayal of retirement as the best time of our lives, the reality is that retirement is stressful (ranks in the top 10 most stressful life events) and it is a transition that will impact all areas of our lives: our identity, goals, how we spend our time, and our sense of purpose.
Retirement savings will provide you with financial security during your retirement years, but it won’t provide you with help for any of these other factors. So, it becomes increasingly important to incorporate these factors into your planning.
“Financial factors clearly influence retirement decisions…but numerous studies find that such factors are only a small part of the story.”
Center for Retirement Research at Boston College, February 2016
If you are looking for help to prepare for retirement, or need support during your retirement transition, I offer one-to-one coaching and online courses to help guide you in your retirement lifestyle planning. Book a complimentary consultation call with me, I’d love to hear from you.