Photo by Aaron Burden on Unsplash
Many of our clients come to us to plan out their financial retirement, but we often find that they neglect to think about much else further than that. Reaching a point where you can retire and be financially comfortable is one thing, but what about being ready to retire from a mental or emotional perspective?
A slowdown in life’s pace may be something that clients dream about and they may longingly look forward to lazy days with absolutely no agenda, but when the time comes to hang up those metaphorical boots and the reality of it all sinks in, they are often left feeling like something is missing that they can’t quite put their finger on.
After working with people from all walks of life, chatting to them and getting to know them intimately, for over 30 years now, we have a slight suspicion as to what this is. We believe it’s a sense of purpose and belonging – two fundamental human needs that, in many studies, have been shown to decline in older adults, age 65 and beyond.
Without purpose or belonging, life can seem empty and meaningless. And so, one’s risk of depression increases greatly (unfortunately, depression can also trigger a number of health issues such as heart disease, blood clots and strokes!).
Furthermore, research shows that those who retire too early, more often than not, suffer a wide array of health issues and thus they have a shorter lifespan. According to a 2016 study, carried out by the University of Oregon, those who decide to continue working beyond 65 years of age are more likely to live longer and, in fact, even working one year longer can decrease your risk of dying by as much as 11%. This finding makes more sense when you think about how closely mental and physical health are related. Given this, it is not surprising that there is a growing trend towards retiring much later on in life.
With all of this in mind, it makes sense to stop and re-evaluate whether you are mentally ready to retire. Be honest with yourself and ask yourself if you really will be okay with filling your time with purely leisure-based activities like fishing or golf. If your answer is no, then you have a few options to consider, such as retiring later, doing contracted work, or retiring with view of joining or starting an organisation that will give you a lasting sense of purpose and belonging (you could think about a worthy NGO to join or consider plucking up the bravery to teach that class you always wanted to). Whatever your choice is, we will be here to advise you and coach you along your retirement journey.
As financial planners, we are not simply here to do our job and take your money. We build close and lasting relationships with most of our clients and genuinely care about thier wellbeing. Which is why we believe in going out of our way to give them valuable advice that extends beyond finances and helps them reach their full potential and live a meaningful life. You are always welcome to give us a call if you need help thinking through your various retirement options.