Retirement is a major life event: Beyond the change in your financial circumstances, your daily routine, social interactions and even how you define yourself will be forever altered.
At the same time, your health and mental acuity could decline as you age. That’s why planning is crucial to creating a happy retirement. And financial security is the foundation of a happy retirement.
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It’s hard to enjoy retirement if you’re always worrying about money. You’ll need enough to support yourself (and any dependents) for the duration, which means you’ll need to save enough during your working years, grow these savings and then manage how you draw them down in retirement.
Ideally, you’ll engage a financial planner who can help you determine how much money you’ll need to retire, develop a savings and investment plan to help you reach your goals, and then develop a retirement financial strategy to ensure you don’t outlive your assets.
Money isn’t everything
Although financial security is important, money can’t buy happiness (as the old adage goes). And that’s especially pertinent in retirement. According to financial adviser Azul Wells, financial security is just one of several “must-have” retirement assets.
To enjoy retirement, he says, you also need relationships and connections to people you care about, as well as good health and time. By time, he means “honoring the fact that we don’t have a lot of time, and to take full advantage of the time that we do have.”
Similarly, Dave Zoller, a financial planner at Streamline Financial Services, says that in addition to financial assets, intellectual and human assets are key to a successful retirement. Examples of intellectual assets include knowledge, skills, unique abilities, experiences and traditions. Human assets include family and friends, your values, your faith and your health, among others.
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If you could only pass on two of these assets, Zoller says most people will choose intellectual and human assets — since financial assets can be rebuilt if people have those other two assets intact. That’s why retirement planning should begin by asking about “what’s most important to you,” he says.
How to have the ‘must-haves’
While some Americans have a solid nest egg in place, they may only be in good standing in one or two of the following categories. But they’re just as important for a happy retirement.
Stay healthy
Maintaining your health should start long before retirement, but it’s never too late to begin.
If you’re just getting started, talk to your doctor about a healthy diet and exercise program that’s right for you. As you age, you’ll experience losses in strength and coordination, so it may be important to include exercises to combat this as you age. There are also sports leagues and fitness classes geared toward seniors, which come with the added benefit of social interaction.
Combat loneliness
Social isolation and loneliness aren’t uncommon for retirees — and they’re linked to physical and mental health issues, even earlier death. If you’re dealing with loneliness, consider visiting your local senior or community center, which might offer courses, recreational programs or even dedicated socialization activities.
Some seniors have found connections through senior villages, which, for an annual membership, create an extended network with opportunities for socializing and resources for services such as volunteers.
Find your purpose
Having a purpose in retirement may help you live longer and stave off some of the diseases related to aging. Some ways to find purpose include volunteering, working a part-time job and pursuing your passions — particularly if you can join a group or club to do this.
Retirement can be a joyful and fulfilling stage of your life. But it takes planning and attention to all the “must-have” assets — not just your financial assets.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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