Most investors view retirement as a numbers game: How much do I need to save? How should I invest it? How soon can I retire? How much can I spend in retirement? However, many overlook the emotional aspects of retirement.
You’ve likely spent 30 to 40 years pouring your heart and soul into your career. But have you considered how it will feel when that part of your life is gone? The professional identity you’ve built over decades suddenly becomes disconnected from a world where you felt valued. Retirement can be a significant adjustment.
We recently observed this through the experiences of three different couples. As advisers, we often wear our financial hats, focusing on numbers and goals. But it’s equally important to wear the emotional hat to address the aspects of retirement that investors may not anticipate.
For example, one couple came in financially ready for retirement. However, during the meeting, it became clear that one spouse did not want the other to fully retire because they didn’t want them at home all the time. To keep the peace, the retiring spouse would consider volunteering or working part-time.
This situation raises an important question: “What will you do once you retire?” It is essential to fill your days with purpose. After all, there’s only so much golf you can play or so many books you can read before boredom sets in. Finding your passions and purpose is a conversation to have with your spouse as you approach retirement. Otherwise, too much unstructured time together can create tension.
In another case, a couple attempted a staggered retirement, with one spouse continuing to work while the other retired. The retired spouse began pursuing activities they dreamed of enjoying together, spending time and money freely. Meanwhile, the working spouse started to feel like they were working solely to fund the other’s lifestyle. In this situation, we reviewed their financial plan and explored how retiring earlier for the second spouse would impact their goals.
Retirement can fundamentally change your dynamics as a couple. You met, dated, and loved each other enough to get married. You shared common goals—buying a home, raising children, and planning for retirement—but you also had independent lives through work. While you spent weekends and vacations together, much of your time was spent apart. In retirement, you’re together 100% of the time. This shift often requires reacquainting yourselves with each other and finding a new shared purpose.
Unfortunately, not all couples successfully navigate this transition. One couple we worked with divorced within two years of retiring, forcing both to return to the workforce after losing 50% of their retirement savings.
Planning for retirement is far more complex than just managing a portfolio. Asset managers focus solely on financial decisions, but what’s best financially may not always align with what’s best holistically. A trusted adviser’s relationship with clients allows them to consider the emotional components of financial decisions, balancing the pros and cons.
True success in retirement isn’t just about being financially prepared—it’s about having an enjoyable and fulfilling life in retirement.
If you have questions about your preparedness for retirement, the experts at Henssler Financial will be glad to help:
- Experts Request Form
- Email: experts@henssler.com
- Phone: 770-429-9166
Listen to the January 11, 2025 “Henssler Money Talks” episode.