Thousands of Americans retire every day, often finding themselves short on cash, friendships, and plans. Many retirees confess to realizing too late how they could have prepared better for a more financially secure and fulfilling post-work life. In light of this common plight, we decided to solicit wisdom from retirees, asking what they would have done differently, and how they would advise those still in the preparation stage.
It's crucial to highlight the fact that retirement preparation can be particularly tricky because our culture often fails to provide effective models for a successful retirement. Professional success is heavily emphasized, but the picture of retirement success is decidedly less clear. Therefore, by leveraging the collective wisdom and experience of retirees who learned the hard way, we hope to offer invaluable insights for those at every stage of life. As Daniel Pink, author of "The Power of Regret," aptly said, "Regret makes us feel bad, but it can help us do better."SourceMoneyGuru-https://www.mgkx.com/4890.html
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Investing for Retirement Means More Than Money
Jim Pilzner, a retired entrepreneur, found that retirement was more than financial planning and golf games. He realized that what drove him in his career – taking action and learning new things – were elements he still needed in his retirement. To fulfill these needs, he enrolled at the University of Nevada, Reno, to pursue a degree in political science and history.SourceMoneyGuru-https://www.mgkx.com/4890.html
Pilzner's experience underlines an important lesson – the significance of non-monetary investment for retirement. We often focus intensely on financial planning for retirement while overlooking other vital aspects such as defining a new source of purpose, and planning how we will spend our time post-retirement. It's not just about how you will spend your money, but also how you will spend your time.SourceMoneyGuru-https://www.mgkx.com/4890.html
Relationships Are Key to Retirement
Dan Roberts, who retired about 18 months ago, underlined the significance of maintaining relationships. He wishes he had kept in touch with former colleagues for both personal and professional reasons. His experience brings to the fore the findings of the Harvard Study of Adult Development: the quality of relationships is the best predictor of longevity, health, and happiness in later life.SourceMoneyGuru-https://www.mgkx.com/4890.html
Maintaining relationships can also yield tangible financial benefits. Roberts found that if he had kept in touch with his colleagues and maintained his project-management certification, he might have secured contract work that could have funded more frequent trips to visit his family in New Zealand. This example highlights how a robust social network can contribute to financial security and emotional well-being in retirement.SourceMoneyGuru-https://www.mgkx.com/4890.html
Retirement Is Longer Than You Think
Another common regret expressed by retirees is underestimating the length of retirement. Arthur Parmentier, who retired at 65, confessed that he wishes he had worked for a few more years to contribute more to his retirement account. He claimed Social Security at 65, thereby accepting a lower monthly benefit than he would have received had he waited a few more years.SourceMoneyGuru-https://www.mgkx.com/4890.html
Many Americans, like Parmentier, underestimate their life expectancy and subsequently the length of their retirement. They fail to consider that the longer they delay retirement, the higher their monthly benefits will be. According to Laurence Kotlikoff, a Boston University economist, delaying retirement until 70 could yield benefits 76% higher than at 62. This fact is particularly significant given that the life expectancy for a 65-year-old is 84 for men and nearly 87 for women, based on 2019 data from the Society of Actuaries.SourceMoneyGuru-https://www.mgkx.com/4890.html
Retirement is a significant life stage, and preparing for it should involve more than just stashing money away. It's about considering what drives you, how you'll spend your time, maintaining relationships, and understanding the implications of your financial decisions over a potentially longer-than-expected retirement span. By learning from the regrets of those who have walked this path before us, we can better equip ourselves to navigate the journey of retirement.SourceMoneyGuru-https://www.mgkx.com/4890.html
Rethinking the Concept of Success in Retirement
What does a successful retirement look like to you? For many of us, it's an elusive question. However, understanding the importance of defining success in retirement is crucial to enjoying this stage of life.SourceMoneyGuru-https://www.mgkx.com/4890.html
Pilzner's experience showed us that career-driven individuals need to redefine their success in retirement. It's about identifying what motivates you and making sure that these elements are incorporated into your retirement plans. Do you enjoy learning new things or contributing to a cause? Find ways to continue these in retirement, whether it's enrolling in a university course, like Pilzner did, or volunteering for an organization that you're passionate about.SourceMoneyGuru-https://www.mgkx.com/4890.html
Remember, your identity is not solely tied to your professional achievements. Retirement gives you an opportunity to explore other aspects of your life that you may have neglected during your working years.SourceMoneyGuru-https://www.mgkx.com/4890.html
Preserving Relationships for a Fulfilling Retirement
Don't underestimate the importance of social connections in retirement. Roberts' experience illustrates the need for not only financial but also emotional and social planning in retirement. It's crucial to keep the door open to personal and professional relationships, as they can provide emotional support, help you maintain a sense of purpose, and offer opportunities for contract work or business ventures.SourceMoneyGuru-https://www.mgkx.com/4890.html
Spend time nurturing relationships with friends, family, and former colleagues. Consider being part of social or hobby groups, volunteering, or joining community programs that allow you to stay socially active and connected.SourceMoneyGuru-https://www.mgkx.com/4890.html
Plan for a Longer-than-Expected Retirement
Finally, an important lesson from Parmentier's experience is to plan for a longer retirement than you might expect. Considering the increasing life expectancy, this could mean working a few more years or delaying the claim for Social Security to ensure a higher monthly benefit.SourceMoneyGuru-https://www.mgkx.com/4890.html
It's also essential to diversify your retirement income. Think about other income sources like part-time work, rental income, annuities, or dividends from investments. A comprehensive retirement plan considers not just the expected lifespan but potential scenarios like market downturns, medical emergencies, and unexpected personal events.SourceMoneyGuru-https://www.mgkx.com/4890.html
In conclusion, successful retirement planning is about more than building a nest egg. It involves developing a holistic plan that includes financial security, maintaining relationships, finding new purposes, and preparing for a potentially longer retirement period.SourceMoneyGuru-https://www.mgkx.com/4890.html
Remember, the lessons from those who've experienced retirement's trials and tribulations can serve as your compass. Their regrets are not just cautions but invaluable advice for us to plan better and retire better. After all, as we've learned from Daniel Pink, regret can help us do better, and in this case, retire better.SourceMoneyGuru-https://www.mgkx.com/4890.html
So take heed, start planning now, and look forward to enjoying a rewarding and fulfilling retirement.SourceMoneyGuru-https://www.mgkx.com/4890.html SourceMoneyGuru-https://www.mgkx.com/4890.html
