Whether you're a fifty-something business owner planning years ahead for succession, or a pre-retiree counting down the months until you take that long commute home for the final time, you've probably heard plenty of repetitive retirement advice. "Have something to retire to." "Take full advantage of your company matched 401(k)." "Retire debt-free." Sound familiar?
Although the advice itself isn't bad, its effect is diluted by its popularity. When we hear the same thing over and over, we tend to tune it out. If you ever had kids, you know what I mean.
If you're on the search for retirement tips you haven't heard a million times, then you're in the right place. With some digging, I've compiled ten lesser-known tips straight from the mouths of retirees.
1) Take on projects that lead to learning opportunities at work
"But I'm already mentally checked out from my job. Why would I want to work harder?" Fair point, but consider this: if you're watching the clock every minute of every day, how slow is time going to pass? A watched pot never boils, after all. On the other hand, if you're keeping busy, diving into projects, and expanding your knowledge with new learning opportunities, time will fly.
Earlier on in your career, you may have taken this type of opportunity because it looked good on your resume, or was a stepping stone in the company. Now, though, those results don't apply. Still, is there ever a downside to learning? At the very least, you'll have expanded your knowledge and passed the time, and the very best, you'll have discovered a new interest or even the source of a passion project.
2) Build up your life outside of work now
Do you define yourself by your career? Are you one of the few working the dream job you said you wanted back in elementary school? If so, it's likely retirement will be quite the adjustment, to say the least.
Robert Delamontagne, PhD, author of The Retiring Mind, described the difficulty of retirement as a "dirty secret". He found it embarrassing to talk about the struggles he was having, and said, "People would ask me, 'How's retirement?' I used to say, 'It's great! I'm having a great time!' What was I supposed to say?"
Although change is rarely easy, there are ways to lessen the struggle. Many retirees emphasize the need to have interests and relationships outside of the office. With a hobby or two that piqued their interest, and some friends to spend time with, they found themselves better off.
3) Expect to spend more money in your first year of retirement
You're finally free! Time to go on a three-month road-trip across the US, get a massage once a month, go out to brunch with your friends, take your grandkids to an amusement park – and panic when your spending is way higher than you planned for. I can't make this last for two decades! you think.
Good news is, you don't have to. Studies consistently show that retirement spending declines as time goes on; the novelty wears off and you settle into a comfortable routine. You can still enjoy life, take trips, and treat yourself, but the quantity naturally becomes much lower.
So save yourself the heart attack and be realistic with your spending expectations.
4) Consider switching to part-time rather than retiring cold turkey
Leaving the workforce completely is too much too soon for some retirees. If that's something you worry about, you might want to consider easing into retirement like a nervous person might get into a pool: by dipping a toe in, rather than cannonballing into the deep end. Switching to a part-time job may make the emotional and social affects of retirement easier to cope with, and as an added perk, it provides extra income to cushion your retirement money and Social Security.
5) Learn what Medicare doesn't cover, and utilize your insurance coverage while you have it.
Although Medicare is an excellent resource for those sixty-five-plus, it does have its limitations. If you have health insurance from work – especially vision and dental – make sure you use it now! You could potentially save yourselves thousands.
As a heads up, here are some of the common things original Medicare (Part A and Part B) doesn't cover: eye exams, prescription glasses, routine physical exams, hearing aids or fittings, dental care, dentures, root canals, or long-term care, to name a few. Some Medicare Advantage plans do cover some of these things, so it's worth taking time to do the research and find the best fit for you.
If you're not at that point yet, though, you may want to get your achy tooth or worsened vision checked out.
6) Never pass up the opportunity to travel while you can
American author Louis E. Boone once said, "The saddest summary of a life contains three descriptions: could have, might have, and should have." You surely don't want to look back on life with regrets. That's why many retirees encourage traveling whenever the chance arises. Their reasoning? Something could happen tomorrow that takes away the ability. Whether that be family circumstances or a health condition, the principle is clear.
What could be a reason someone would say no to travel? Perhaps they don't want to spend their hard-earned money, or they don't want to rearrange their schedule. But in the grand scheme of things, will these things matter? Will you look back on your life and say, "I wish I still had all my money holed away instead of using it to enjoy life?" or "I'm so glad I didn't go on that amazing trip with friends, so that I could stick to my easily adjustable schedule"?
7) Declutter your life
When we live a life on the go, things pile up. Projects get pushed off to the side, old bills accumulate, and broken items you swear you'll fix soon. How refreshing would it be to finally clean that all out, and have a fresh start?
Easier said than done, of course – it took you awhile to accumulate it, so you can expect decluttering will be the same.
The benefits far outweigh the sacrifice. For one thing, the mental weight of clutter will be gone. No more stress at looking around your house and feeling overwhelmed by all the work to do. Another benefit is that far down the road, when the responsibility of your home is put into your heirs' hands, it'll be less of a monumental task to take care of it.
8) Don't fall into the trap of "keeping up with the Joneses"
Life isn't a competition, but sometimes it can feel like it. As a mature adult, you may feel you're immune to the pressure of fitting in, but anyone is susceptible to the subtle influence of peer pressure. Comparison is the thief of joy.
This principle helps no matter what stage of life you're in, but especially as you're approaching retirement. Seeing your neighbors – especially if they're in the same stage of life as you – buying new cars and bigger houses could make you question if you're missing out by not doing the same. What does your reliable, understated car say about you? How about the modest home you own?
It says this: you know what matters most to you. Lifestyle inflation is the enemy of wealth building, and you keep your eyes on the prize: a balanced relationship with money and enough savings for retirement.
If you must compare, reverse it: think of how your circumstances in a positive light. "I'm so glad I don't have to spend hours cleaning a huge house like she does." "It's great that I've paid off my car and home instead of stressing about interest rates like they are." "I'm happy I kept my expenses low so I could afford to spend money on what I really care about, like travelling and my hobbies, unlike him."
At the end of the day, it doesn't matter what everyone else thinks of our choices: we need to be happy with them ourselves. And as retirement nears, that mindset matters more than ever!
9) Make sure your dream home fits your future needs
Have you been planning to build or buy the home you've always dreamed of? Perhaps you envision a house in the mountains with giant windows, letting in tons of natural light and showcasing a breathtaking view. Or maybe you imagine a farmhouse with a wrap-around porch and a swing facing the sunset. Whatever your dream home is, retirees emphasize the need to think past the present.
As one article puts it, "We’re much better at planning for here and now rather than for the if and when. We foresee the fun, but not the future." No one wants to think about unfortunate possibilities, but when making a decision as long-term as a home to live out your retirement in, foresight matters.
One factor to consider is travel time. How long would it take to get to the grocery store, doctor's appointments, or even the hospital? Another is the property itself. Are there a lot of stairs into the home, or to get to the bedroom? Are there any steep inclines in the yard or driveway that could be troublesome down the road? Is storage easily accessible, or is a step-ladder needed?
Don't worry, though, if your dream home doesn't perfectly fit future needs right now; many of these details are fixable. The point is to be cognizant of them as decisions are made.
10) Limit obligations for the first few months of retirement
Have you ever adopted a pet? When I adopted my little dog, AJ (short for Almond Joy, but I joke that it's Aroma Joe's) we were encouraged to slowly transition him into our routine. New things, even fun ones, were to be limited. No pet stores, no dog parks, no doggie play dates. Why? Because AJ needed time to adjust to his new life – even though it was far better than before he came to me.
It's similar when thinking about the beginning of retirement. We work, work, work, and then when we finally get to the finish line...do we launch ourselves into obligations and activities? Or do we take it slow and let ourselves adjust to our new normal?
Many retirees express the benefits of taking a few weeks, or even months, to get acclimated to your new lifestyle. Instead of jumping into vacations, fun activities, and busy days, they encourage slowing down.
For example, as fun as a vacation is, how often do you find yourself uttering the words, "I need a vacation from my vacation"? It can be exhausting! The same can be true for fun activities and busy schedules. Without a chance to rest, you may do yourself more harm than good.
Good Things Ahead
There you have it: ten lesser-known tips for future retirees, from present retirees. Did any of these tips stand out to you? Tip ten, giving ourselves an adjustment period, was the most striking to me. I'm the kind of person who is always going, going, going. If I don't have anything going on, I tend to find something to keep busy with! Then I complain I never have time to relax. Ha.
Whether you're weeks or years away from retirement, I hope you can find fulfillment and pride in your last hurrah in the workforce, and joy and rest in your retirement to come. If you need assistance with the financial side of things, Eric would be happy to meet with you – whether you're a long-time client or a newcomer.