You may feel anxious about the future, but research shows you should run, not walk, to retirement. The best years of your life are waiting for you, so prepare for retirement.
Most people feel that retirement is the happiest time of their lives.
From the research Age Wave and Merrill Lynch It turns out that people are happiest and most satisfied with their lives between the ages of 65 and 74.
Consider the following comparison, which shows how feelings of happiness, satisfaction and relaxation skyrocket and anxiety plummets after retirement.
- Only 51% of people ages 25-34 say they feel happy most of the time, compared with 76% of people ages 65-74.
- While only 47% of young people say they often feel satisfied, 71% of retirees report feeling satisfied.
- 71% of people aged 65-74 feel relaxed frequently, but only 41% of people aged 25-34 feel this way.
- But what about anxiety? Only 12% of people ages 65-74 say they feel anxious often, while 37% of people ages 25-34 feel anxious regularly.
If you want to enjoy a happy retirement, it’s best to be financially prepared.
Another study Employee Benefits Research InstituteSurveys have found that while most older people are indeed happy, a growing proportion are dissatisfied than before.
The percentage of retirees who say they are “very satisfied” with their retirement life has fallen from 60.5% to 48.6% over a 15-year period. Experts believe the decline in satisfaction is due to one of the following:
- Difficult financial situation
- Lack of direction and purpose at this time in life
8 questions to ask if you want to have a happy retirement
Here are eight questions to ask yourself if you want to make sure you’re truly prepared for retirement, especially a long and happy life.
1. What do you want to do after you retire?
Retirees seem to be happiest when they have a passion they want to pursue or some other specific purpose in life, so deciding what you want to do after retirement should be an important part of your retirement planning process.
“Even if you’re financially in a position to retire, you still have many years of life ahead of you, especially if you’re in your 50s and 60s,” says Scott Draper, a certified financial planner with Thrive Financial Planning in El Dorado Hills, Calif. “What does the next stage of your life look like?”
“Retirement is a great time to revisit old hobbies and dreams,” says Kate Holmes, founder and president of Las Vegas, Nevada-based Belmore Financial LLC.
And some of those passions could even become income-generating activities in retirement, she said, noting that more people are pursuing new careers or dedicating time to volunteering after retirement.
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2. Do you have a daily schedule or routine for your retirement life?
Waking up in the morning and thinking about what you’re going to do that day can be surprisingly taxing and depressing.
Successful retirees plan their days: a regular round of golf, coffee with a friend, volunteering, walking the dog, etc. It’s not so much what you do, it’s the schedule you schedule to do it.
Pre-retirement life has a predictable routine: Work takes priority, and often everything else is scheduled around it. From laundry to mowing the lawn, many people plan and maintain a routine to ensure it all gets done.
In retirement, all you have is time, so a schedule may not seem as important.
But routine is more important than ever. Northwestern MedicineRoutines can help you sleep better, reduce stress, make better use of your time, improve your health, and enhance the quality of your life by using your time more mindfully.
3. Are you ready for retirement? Who is in your social support network?
You might have a love-hate relationship with your coworkers, but they’re probably your biggest source of social interaction. They keep you mentally stimulated and get you out of your head and into the real world.
You still need social interaction in retirement, but it can be harder to find.
4. Will you be able to afford to retire? Do you have a retirement plan?
This is the question most people think about when considering whether they’re ready for retirement. It’s important — and it’s about more than just hitting your savings goals.
Your security in retirement depends on how much income you need and how well you can afford it. Some retirees move on to the next stage of their lives only to find that their needs exceed what they had planned for. That means downsizing significantly, putting a real damper on the lifestyle they had hoped for.
Find out what’s possible for you with the NewRetirement Retirement Planner, a comprehensive tool that encourages you to try as many different strategies as you can imagine – and you’ll immediately see the impact each change makes on your overall financial situation.
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- Plan your budget by taking into account both large one-time expenses and monthly outlays (see 9 ways to accurately forecast your retirement expenses).
- Think about health care and the huge out-of-pocket costs. Also consider what you will do if you need long-term care. Out-of-pocket health care costs in retirement can be expensive, especially if you retire before you are eligible for Medicare.
- Calculate how much to withdraw from your savings and when to withdraw it (pay attention to required minimum distributions).
- Do you have a job or passive income after retirement? For how long?
- In a worst-case scenario for financial markets, how would your investments change and what would you do?
- Are you prepared for different inflation levels?
- What are you going to do about the debt you have?
- Do you have a backup plan and do you foresee potential problems that may arise?
5. Have you thought about your family?
Retirement planning rarely affects just one person, but too many people make plans for people other than their loved ones. Spouses are an obvious consideration, but children and parents (if still living) can have a positive or negative impact on your finances.
Family is a great source of happiness (and sometimes stress), and you need to be prepared for expenses related to your loved ones. Check out our articles on retirement planning with your spouse, the gray divide, the sandwich generation, boomerang kids, and the average financial gift to a child.
We said planning with your spouse is a given, but many couples struggle with this. Here are eight topics to address if you want to bring marital harmony into your retirement years.
6. Where do you want to live?
Choosing the best place to live after retirement can be a financial decision, a lifestyle choice, or both. For most households, housing is both their largest expense and their largest asset. So where you live is a key factor in determining your financial security and happiness.
Have you considered how downsizing or senior communities could affect your happiness in retirement? Could cutting housing costs or freeing up home equity help you retire sooner?
7. What gives meaning and purpose to your life after retirement?
From the research University of Oxford The findings suggest that people with a sense of purpose have a 15 percent lower risk of dying than those who report having little purpose, and it doesn’t seem to matter when people find their direction — they could be in their 20s, 50s or 70s, even taking into account other factors that affect lifespan, such as age, sex and mental health.
Research has found that a sense of purpose leads to a longer life.
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8. Do you need help or a second opinion?
You can’t afford to make mistakes when it comes to retirement, and you certainly don’t want to waste this time in your life.
You may also consider getting financial or emotional support.
Have you considered hiring a financial advisor? A financial advisor will check your finances, ensure there are no mistakes, and give you ideas on how to maximize your wealth and happiness. ForbesSome of the biggest mistakes retirees make that can be avoided by using a financial advisor include:
- No firm financial goals
- Procrastination
- Ignoring tax strategies
- Not sure how to turn your savings into a steady income?
Work with a CERTIFIED FINANCIAL PLANNER™ professional at NewRetirement Advisors to identify and achieve your goals. Schedule a free discovery session.
Are you ready for retirement? Let’s get started!
If the answers to the questions above indicate you’re ready to retire, it’s time to get serious. Here’s a 20-item checklist to do when you’re ready to take the step.
