As summer comes to an end, many people are cramming in last-minute vacations. I was able to enjoy some cooler weather this summer in the beautiful mountain town of Telluride, Colorado, and I am looking forward to a weekend trip to the red rocks of Sedona, Arizona.
Those who know me well know that I truly enjoy planning trips. Weeks or even months before any trip, I’ll start doing quite a bit of research. Whether it’s a short weekend excursion or a two week trip, part of the fun for me is the planning. I’ll research where we will stay (hotel, condo, or cabin?), how much we can spend, what attractions and restaurants are in the area, and I’ll even look at the restaurant menus. By the time I arrive at a destination, I already feel as if I know it pretty well.
Summary and Takeaways
The non-financial aspects of retirement planning, which are often overlooked or neglected, are essential. That’s because they help ensure a more rewarding experience and overall quality of life as a retiree. You would definitely plan where to go, what to do, and how to make the most of an annual vacation. But the typical retirement lasts 20 or 30 years, so planning how and where to spend it is extraordinarily important. This article offers expert tips and simple but insightful exercises you can take advantage of to create a successful and fulfilling non-financial retirement plan.
Key Takeaways
- Retirees are happier when they live in a place they love that offers convenient access to leisure activities, recreation, and a variety of other retirement lifestyle amenities.
- Retirement is more enjoyable when supported by a vibrant social life and opportunities to continue connecting with friends and family while also making new friends.
- It is important that you feel a real sense of purpose to motivate you and give genuine meaning to your retirement.
- Launch a second career, go back to college, get involved in community volunteerism, take up new hobbies, or travel and see the world.
- Maintaining good health as you age is also vital so that you can continue to derive the most joy from an active retirement.
I mention vacation planning because it has been said that most people spend more time planning a vacation than they do planning for the non-financial aspects of retirement. While it is essential to have a solid financial plan in place for retirement, money isn’t the only factor in the equation of a happy retirement.
Examples of non-financial retirement planning include:
- Developing a sense of purpose and meaning
- Maintaining social connections and building new ones
- Planning for healthy aging
- Identifying leisure activities and hobbies
Below are a few parallels between vacation and retirement planning:
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Vacation |
Retirement |
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When am I going? Winter, spring, summer, fall? |
What year do I plan to retire? |
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Where am I going? |
Where will I live? |
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What is my budget? |
What is my net worth? How is my cash flow? |
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Do I have an itinerary? |
How will I spend my days and what kind of lifestyle do I want? |
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Am I going with anyone else? |
Will I be near my friends and family? |
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Are there good restaurants? |
What are the options and amenities for entertainment and recreation? |
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Do I need to rent a car? Is the area walkable? |
Do I have a wellness plan to stay active and physically fit? |
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Will I need travel insurance? |
Will I have adequate health insurance, including long-term care coverage? |
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Do I have the required travel documents? |
Do I have my estate planning documents in order? |
Keep in mind that retirement isn’t just an extended vacation, but a major life transition. And, like many transitions (graduation, starting a career, moving, marriage, having children) retirement can be challenging if you are not fully prepared. Experts working in the retirement field generally suggest that you invest at least 18 to 24 months to develop your non-financial retirement plans.
Here’s an exercise that can get you started and help you develop a vision of what you want your retirement to look like. Ask yourself these clarifying questions:
- What aspects of your current life do you treasure the most?
- What new skills would you like to learn?
- With whom do you want to spend more time, and where would you prefer to spend it?
- What’s one life goal you haven’t yet fulfilled?
- Imagine it’s a weekday morning and you’re retired. What would you like to do today?
The average life expectancy in the U.S. is currently 81 years of age for women and 77 for men. According to the Social Security Administration, one in four people who reach their 65th birthday will most likely live until at least age 90. Twenty-five to 30 years is a long time to spend in retirement, and deserves thoughtful strategic planning!
Another exercise is to plan your perfect day and week in retirement. After all, for most of those who are approaching retirement their weekday schedules for the last 30 years were completely booked, from nine to five. But retirement gives you at least 40 more hours per week of free time – to spend any way you want!
My Perfect Day in Retirement
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Morning |
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Afternoon |
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|
Evening |
My Perfect Week in Retirement
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Sunday |
Morning Afternoon Evening |
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Monday |
Morning Afternoon Evening |
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Tuesday |
Morning Afternoon Evening |
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Wednesday |
Morning Afternoon Evening |
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Thursday |
Morning Afternoon Evening |
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Friday |
Morning Afternoon Evening |
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Saturday |
Morning Afternoon Evening |
You may notice that while it’s quite easy to fill up your schedule for one day, filling up the entire week is a bit more difficult. That’s why taking the time to complete these types of exercises before your retirement can make your transition into retirement smoother and more intentional. Get to know your retirement destination before you arrive! If you are nearing retirement and would like more information and guidance regarding both financial and non-financial retirement planning, reach out to your Cardinal Point advisor.