The 5 Biggest Myths About Retirement
- Many retirees and pre-retirees underestimate the challenges of this new chapter in their lives. The earlier you can plan ahead the better–at least two years out is ideal.
- For most retirees, the feeling that comes from time, money and relationship stress is still there. It just manifests itself in different ways than it did during your working years.
- Many retirees tell me, “I’m busier now than when I was working. I don’t know how I did it when I was employed.”
I once had a very sobering client experience working with a married couple. The husband was winding down his work career. At his retirement party, the alcohol was running low, so he volunteered to pick up more. Unfortunately, in the liquor store parking lot, he had a massive heart attack and died suddenly.
It’s a horrible story and I had to really help his widow through a terrible time. But this story is a classic example of a person who just wasn’t prepared for his retirement. The thought of retirement was highly stressful for him.
This event made a huge impact on me. I love doing retirement planning and walking through all of the scenarios with clients. But, to this day, that one made a real impression on me that has lasted to this day.
5 myths about retirement
- Retirement is easy.
- You have plenty of free time.
- Retirement is stress-free.
- Your finances are okay.
- You can finally relax.
Let’s take a closer look at these five myths:
- Retirement is easy. No, it’s not. Your daily routine, sense of purpose, relationships and priorities are going to change dramatically once you’re no longer in the day-to-day workforce.
- You have plenty of free time. Not true either. It’s easier for me to get ahold of my clients who are working than to reach my retired clients, because I know where my working clients are during the day. Retirees are so busy. They could be traveling, volunteering or picking up grandchildren, among other things.
- Retirement is stress-free. Hardly. Sure, high school, college, work and raising children are tough. But so is retirement. Between relationship and health concerns, among other issues, you’ll face different stresses, and they’re better handled proactively.
- Your finances are okay. Big misconception. Folks walk into retirement thinking, “I’ve got enough money,” but many times they never went through the projections and planning necessary to determine if their money would last long enough. They often underestimate the impact of inflation, health care costs, long-term care costs and tax code changes on their nest egg. Plus they’re going to travel more and help out children and grandchildren more, both financially and with child care.
- You can finally relax. Another misconception. You want to plan for your on-going growth because life’s about growing. I suggest you start planning for your retirement transition at least two years ahead of time, because it takes that long to make a lot of the necessary adjustments.
Speaking of planning for retirement, we have a complimentary second opinion service. Give us a call. Bring a trusted friend or loved one in to talk about his or her finances and walk through some of these issues I just covered–free of charge. I hope this helps.
Until next time, enjoy.
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