Retirement Planning is More Than Math

It's easy to think that retirement planning is all about crunching the numbers - calculating how much money our clients need to save, projecting investment growth, estimating future expenses and budgeting for life after leaving the workforce. And yes, we do these things daily for clients. However, an overlooked aspect of retirement is the mental, social and psychological adjustments that come with this major life transition. Beyond just financial preparations, it's important for retirees to get ready for the potential loss of purpose, shifts in routine, identity changes, health impacts and marital/family adjustments that retirement frequently brings.

If you have been career-driven, your job and professional accomplishments provide a large part of your sense of purpose, goals and identity. When you retire, that source of meaning and motivation can disappear overnight, leaving some retirees feeling aimless, bored and purposeless. Without an inherent productive "reason to get up" each morning, you can lose that profound sense of contribution, self-worth and personal growth that your job provided. Preparing for this loss of purpose ahead of time by cultivating hobbies, passions, volunteering gigs or part-time work opportunities can be crucial to filling that void and establishing a new sense of drive in retirement.

Beyond losing your sense of professional purpose, you may also find yourself grappling with a loss of identity and self-confidence after retiring. Much of how we define ourselves and our societal "role" is often closely tied to our careers and job titles. You may struggle with figuring out who you are and how to introduce yourself once you no longer have that career marker of identity. Preparing for this identity shift could involve redefining yourself around other personal traits, roles like married/parent/grandparent, or non-career accomplishments you take pride in. Not letting your professional identity become your entire identity while still working can also smooth this transition.

For decades, your routine was likely oriented around work - getting ready, commuting, putting in productive hours, meeting deadlines, and then rewinding at the end of the day. Retirees often find their days lack the familiar structure and flow of life organized around the workplace. Too much unscheduled free time can lead to boredom, listlessness, and even depression for some. On the flip side, no longer having work commitments can make it easy to fall into an unhealthy routine of sleeping late, sedentary days in front of the TV, and lack of activity. Mapping out a reasonable retirement routine that maintains discipline, activity and a schedule - while also allowing for flexibility and leisure time - can help provide retirees with a productive yet relaxed rhythm to their days.

Work provides more than just a paycheck and professional identity for many people. The social connections, daily routines that encourage activity and exercise, intellectual engagement and being part of a community with workplace colleagues can all benefit one's physical and mental health. Retirement strips a lot of those built-in health benefits and protective factors away, leaving some retirees vulnerable to gaining weight, becoming more sedentary, social isolation, and even cognitive decline or dementia onset. Being proactive about maintaining healthy habits like getting regular exercise, eating a nutritious diet, pursuing cognitively stimulating hobbies, scheduling group activities and making social engagements is key for retirees. Staying active and engaged can prevent many of the health pitfalls that retirees often face.

Finally, retirement often creates challenges for married couples who may have very different expectations and visions about life after work. While one spouse maybe eagerly looking forward to traveling, relaxing and spending quality time together, the other might want to keep working, start a business, consult or pursue hobbies that their partner isn't as interested in. Differences in sleeping and routine schedules, socializing desires and shared activities can create friction and highlight how interdependent the partners have become during their working lives. Openly communicating your hopes, planning some shared couple's interests, and being intentional about maintaining some individual space and separateness becomes really important during retirement to allow both people to thrive. Some marital counseling can also help smooth this transition for many couples.

While all the number-crunching and financial preparations are still crucial for retirement, it's just as vital to engage in the psychological, emotional and social planning required to navigate this next chapter successfully. Having a game plan for filling the purposeless void, maintaining your identity, establishing a healthy routine, avoiding health pitfalls and adjusting to new marital dynamics are every bit as important as managing the numbers.