Your Retirement Plan May Be Missing One Key Ingredient
When preparing for retirement, financial planning is often top of mind – and for good reason. People are living longer than ever before, health care costs are rising and pensions are on the way for many people. Because of that, it’s important to save for the retirement you want, as well as what you don’t expect.
But many retirees miss one important ingredient when planning for retirement: prioritizing their mental and emotional health.
A flaw in traditional retirement plans
An AARP study found that more than half (57%) of retirees have not thought about planning for their emotional health in retirement. The study also found that nearly half of retirees had not planned how they would find fulfillment in their retirement.
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Retirees may feel a loss of structure or purpose when they stop working in a regular job. They may also see their social circles shrink, as retirement means saying goodbye to co-workers. While it is necessary for retirement planning to focus on income and making sure your nest egg is large enough to cover your living expenses, this granular focus can backfire if you don’t consider what you will do with all your spare time.
Remember that not planning for your retirement – whether it’s emotional, mental or physical – can also have a financial impact. You may incur health care costs down the road that you wouldn’t have had to deal with when you were focused on your health. In other words, you can save money in the long run and help preserve your nest egg by planning how to live a healthy life in retirement.
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How to plan for the non-financial aspects of retirement
In between crunching the numbers to make sure your finances are on track for retirement, take some time to think about how you’ll spend your newfound free time. Consider your purpose beyond going to work. Of course, this will be different for everyone. Some retirees will spend more time with grandchildren while others will volunteer for community service.
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It is also important to plan how you will maintain, and perhaps even grow, your social circle. If you decide to volunteer, that’s one way to meet people. Joining social clubs and activities, such as a book club, can also help you build your network. A calendar full of activities for non-work and friends and family gives you things to look forward to each week and allows you to plan ahead.
You don’t have to complete your entire plan on your first day of retirement. Start by establishing one to three non-financial goals with timelines for when you receive your final paycheck. After that, you can slowly start building your schedule and social network as you move into your prime years.
