Good Retirement Planning Involves More than Money

Good retirement planning involves more than money.

I once knew a man who couldn’t wait to retire from his executive government job. With a few decades of hard work and wise money decisions, his calculations showed he was able to call it quits at 55. Thrilled with his newfound financial freedom, he immediately took to cooking, golf, dating, traveling, fishing, and having fun. For the first few years, every time I saw him, it appeared retirement life had lightened his step and his heart.

At 65, he moved to a Florida retirement community. From the outside it looked idyllic, with manicured lawns and matching mailboxes. One of the few ways to stand out was by the cover on your golf cart. It offered an amazing array of interest groups, outdoor activities, dining, and health care. You didn’t need a car to get almost anywhere. He told me the residents referred to it as Disney World for adults.

No One to Talk To?

Yet, on a phone call one day he said, “Y’know, I really like talking with you. I don’t have anybody to talk to here.”

This was a shock. “What?” I said, “What about golf and pickleball friends? Aren’t there some retired CEOs, executives, people that think like you, that you have something in common with?”

“Nah,” he said, “I don’t have that much in common with anybody here.”

I thought that was crazy. He talked, dressed, shopped, and exercised with and like them. He probably was just as well off, financially, as any of them. It appeared he fit in perfectly with the crowd. How could he not have someone to talk to?

Unfortunately at that time, I was unfamiliar with the signs of depression. A few years later, it took his life.

Three Myths About the Ideal Retirement Life

According to Mitch Anthony, author of The New Retirementality, there are three myths about the ideal retirement life.

Myth 1: “This part of my life is going to be about ME.”
Anthony says, “This is a formula for emptiness.”
Myth 2: “I am going to surround myself with people like ME.”
Anthony’s reply: “This is a formula for stagnation.”
Myth 3: “I am going to do nothing but relax.”
Anthony: “This is a formula for boredom.”

Hm. Emptiness, stagnation, and boredom don’t sound much like the ideal retirement.

Yet, these three goals form the basis of a lot of retirement lifestyle plans.

The allure is understandable, particularly for people coming off a life of stressful responsibilities and sleep-stealing burdens.

A Mayo Clinic gerontologist said, “A life of total ease is two steps removed from a life of total disease. The first step is they get bored. The second step is they grow pessimistic, and then they get ill.”

I’m afraid that may be part of what happened to the man who appeared to have the ideal retirement plan, but ended up having no one he felt he could talk to.

The Dark Side of Retirement Plans

Writer Robert Laura describes the “dark side” of retirement. For some who don’t think about how to bring meaning and purpose to their life after work, serious mental health maladies like depression and addiction await. Surprisingly to some, the U.S. age group with the highest suicide rate is adults over age 75. In fact, Florida retirement communities have some of the highest suicide rates in the country.

Of course not everyone in retirement communities is depressed. It’s much more common to see residents who live vibrantly, filling time with volunteering, mentoring, and close social circles.

Ironically, few of the things that bring the most fulfillment require much money. But they often do require investment in one’s mental, emotional, physical, and spiritual health.

5 Parts to Plan For More Than Money

For those like the man above, jumping from the work treadmill onto the retirement scene with only the financial part of a plan can be risky. Instead, consider these preventive suggestions for the non-financial parts of a well-thought-out plan:

How much of your identity is tied up in what you do, rather than who you are?
How could you start creating a life to retire “to” rather than simply a job or business to retire “from”?
Would it make sense to gradually reduce to part time and take extended vacations, rather than showing up one day, and having nowhere to go the next?
In an ideal retirement week, how would you spend your time, and with whom?
How could you build or reinforce a diverse social network outside of work?

Many, if not most, financial plans address the question of “How much income can I get with the amount of money I have?” Then everyone, the planner and the client, let that answer dictate their lifestyle.

Instead, the best financial plans start with defining a healthy, fulfilling life first. Then they match up those parts with money decisions.

That’s why good financial planners ask first how you want to spend your time, before asking about your money. If you define what an ideal retirement means first for you, then your retirement plan and your retirement life have far better chances of success.

Dedication to Mental Health Awareness

Following May’s Mental Health Awareness month, every June I republish this story in memory of the man who inspired it. Retirement is a major life transition that can have an under appreciated impact on mental health.

Resources for Ideal Retirement Plans:

Dori Mintzer, Ph.D. has a weekly live interview series and podcast called “Revolutionize Retirement.” In it, she interviews experts on retirement life.

See, The Mindful Money Mentality: How To Find Balance in Your Financial Future (Porchview Publishing, 2013).