Hayduchok: Delawareans can give retirement a trial run
Len Hayduchok is the CEO and owner of Dedicated Financial Services in Lewes and guides others as a certified financial planner and a certified life coach.
With many major purchases in life, Delawareans often have the opportunity to test out or experience the product. They can tour a home, try on a new outfit or test-drive a car. Of course, the decision to retire is a much more important one because it encompasses one’s entire lifestyle and forces individuals to reassess who they will be when they retire, when their career identity is in the rearview mirror.
For the older Gen Xers and the younger boomers, retirement is just around the bend. Just like driving a new route, minds can race with questions about whether their financial track is ready. “Do I have enough saved?” “Will the economy shift, changing my outcomes?” “Will my strategies crack with the pressure of unexpected risk?”
Just as importantly, preretirees have to project what their new journey on the “life track” will look like. “How will I spend my time?” “Who will I be doing life with?” “How can I enjoy retirement, while maintaining a sense of life purpose and fulfillment?”
How can preretirees take their retirement for a “test drive”? First, it’s important to consider it the same way one would weigh a massive life purchase, like the process involved when buying a new car or a new home, planning a wedding or choosing a college. It’s important to do one’s homework (and enjoy the process!). Rather than just buckling up and relying on previous experiences in life’s journey, consider that retirement is both 1.) the biggest purchase of one’s life (stopping an individual’s income stream is very expensive) and 2.) unlike any other purchase made before (and, likely, involving more than money).
Plan your road map
Folks have started saving, contributing to a pension and dutifully sending Social Security its dues. And there are benchmarks of all varieties to help calculate how much is enough. However, there are practical, important pieces that benchmarks don’t consider but that need to be weighed, as one plans to truly make this monumental purchase both enjoyable and fulfilling!
Test drive
Preretirees can give their budget a spin by spending a few months living on the amount they’ll be living on in retirement (their fixed monthly amount). Like checking the gas tank, they’ll gauge whether they have sufficient assets and income in place. They should consider spending habits and lifestyle choices, and whether the plan is something that needs adjustment.
Learn about your destination
Does a plan include relocating, downsizing or making a current home work better for the retiree?
As preretirees consider relocating for retirement, they can start traveling and even trying out different Sussex County towns. It’s key that they don’t travel with a luxurious budget to visit all the tourist spots but rather rent a home and even stay a bit longer. Visit the grocery stores and local activity centers. Live normal, everyday life as much as possible. If they’re weighing age 50-plus communities, then they should arrange an extended stay in the ones being considered.
For those planning to “age in place,” allocate thoughtful time at home. They can try spending longer chunks of time in their homes, seeing as they’ll be spending a lot more time there in retirement. Imagine navigating a space in an aging body. Does it need accommodations? (And are they feasible/affordable?)
Assess the driver
As the driver, each retiree needs to take time to consider who they are to determine their best plan. What beliefs and values did they acquire throughout life that they want to apply in this new stage in life? What will they engage in to shape them into the person they will become?
Along that line, there are past “road trips” that could be helpful in planning this journey. Preretirees can set aside some time to consider the pastimes and hobbies they may want to explore in retirement. Then, look around and start to connect with groups or individuals around these.
It’s good to consider the causes or activities they might want to pour into (weekend gigs, volunteer spots) — and give it a go for a weekend or once a month. Stepping into retirement with some structure (friends, projects and goals, as well as rhythms of time) allows one to step in strong, ready to explore and grow.
Talk to your (travel) agent
Advice from professionals can be invaluable, whether it’s a financial adviser, life coach, mentors/retirees (including family members) and previous co-workers who have retired. There’s no need to reinvent the wheel in retirement.
It’s helpful to connect with others who are making retirement look amazing — leaning into the type of life one would like to have. Preretirees can think specifically about “quality of life” and their level of happiness, activity and fulfillment, not just the “wow” factor of expensive trips and a costly lifestyle. They will have plenty of lessons to share, from tips on budgeting to personal mistakes they’d love to lead others to steer clear of.
There’s no need to speed one’s decision. Remember, retirement is not a destination but a journey. The decision to retire is a part of it. Preretirees should enjoy this trial run, as it’s a chance to plan what lies ahead and experience great enjoyment and fulfillment.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
