As someone who writes a lot about retirement, I'm swamped with constant surveys and research on how little Americans have saved for retirement. But rarely do I see research that tells people how to be happy when they leave the workforce.
Sure, the saving part is a no brainer. Most people haven't saved enough and should save more. I've said that more than once.
Yet what do you need to know to find fulfillment when you stop working? I came across this interesting study from TIAA that sheds some insights on successful retirees:
Preparing for the Realities of Aging Although the survey reflects an overall positive experience in retirement, the realities of aging still keep many up at night. "Fifty-three percent worry about becoming a burden to others, 46 percent worry about a spouse or partner dying, and a significant minority are concerned with mental/cognitive deterioration (44 percent) and mobility issues (43 percent).
Healthcare savings accounts, long-term care insurance, and a steady source of income for life can all help individuals reduce anxiety and feel more secure as they enter retirement."
Satisfaction with an Independent, Active Lifestyle "Staying active is an important lifestyle choice shared by successful retirees: among those who participate in 10 or more activities, 76 percent are very satisfied with their life in retirement, compared to just 52 percent of those who participate in only 1-4 activities.
The majority spend time in retirement alone, pursuing personal interests and hobbies (75 percent). This represents a big shift from working life -- and is an important shift for retirees to prepare for psychologically.
Stronger Bonds in Relationships – The majority of individuals who had an easy transition to retirement (85 percent) had a similar outlook on retirement as their partner, compared to just 53 percent of those who had a difficult transition.
Research shows that it is critical to take the time to care and plan for this transition – both emotionally and financially – to secure a more satisfactory retirement.
Charity, Sense of Security A sense of financial security can give retirees the comfort level needed to give back to their communities – 65 percent regularly spend time volunteering or working with charitable organizations. Successful retirement planning can allow retirees to commit more of their finances and their time to help family members, like grandchildren, or give to charity."
What You Can Do To Be Happy
In my experience, the happiest retirees have not stopped moving. Either they are engaged with their families or communities or they are still working.
There's nothing wrong with slowing down or traveling, but don't become sedentary. Keep your mind and body involved with something challenging.
Also be realistic. What will happen if your or your spouse/partner becomes disabled or dies? Is there someone in your life who can become a caregiver? Or will you be happy being in assisted living?
Naturally, no one wants to think about disability, health care or even long-term care when they are younger. Yet these are the factors that you need to consider if you want to remain independent.
Drafting a life plan on how you want to live in retirement is important. What do you want to be doing? How do you want to live your life? Other than saving enough money to cover your living and discretionary expenses, having a template will make a huge difference.
