The average retirement age in the United States is sixty, and the average life expectancy is age seventy-nine. Note that to get the ‘average’ life expectancy, you include many who will live well beyond that age, with more and more people living to centenarian status.
It goes without saying that you must carefully calculate that you have enough money to fund twenty to forty years of retirement. Still, too often, people do not consider the emotional aspects of what can be a dramatic transition. Before you retire, ask yourself these questions:
- How will I replace/spend 40 hours per week?
- How will I maintain/create a purpose for my life?
- How much of my ‘personal identity’ is tied to my work?
Use your answers to drive your retirement game plan. Maybe for some it might include not retiring at all…continuing to work; turning a hobby into a full or part-time job, engaging in fulfilling work with charities; or simply spending more time with the hobbies and interests you enjoy.
Example: My father worked until his death at age ninety-nine even though he had more than enough money to retire early. Why? He loved the camaraderie, energy, and relationships of the office environment as well as the client relationships.
Follow The Welch Group every Tuesday morning on WBRC Fox 6 for the money Tuesday segment.
FOX 6 TALKING POINTS
Thinking of Retiring? Consider the Emotional Aspects
Thesis: People are living longer (age 79) and retiring earlier (age 60). Once you’re confident you have the financial resources to retire, do a self-check of the emotional aspects of this life transition by answering these questions:
- How will I replace/spend 40 hours per week?
- How will I maintain/create a purpose for my life?
- How much of my ‘personal identity’ is tied to my work?
Bottom line: Develop a game plan for how you will spend time and create meaning and purpose for life after retirement. For some people continuing to work is the best solution; for others, working part-time is the right solution; and some people thrive just being retired. What about you?
Stewart H. Welch, III, CFP, AEP, is the founder of THE WELCH GROUP, LLC, which specializes in providing fee-only investment management and financial advice to families throughout the United States. He is the author or co-author of six books, including J.K. Lasser’s New Rules for Estate, Retirement and Tax Planning- 6th Edition (John Wiley & Sons, Inc.); THINK Like a Self-Made Millionaire; and 100 Tips for Creating a Champagne Retirement on a Shoestring Budget.
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