By Kaye Olsson, I Start Wondering Columnist
I like to think of life as being divided into a series of chapters. Chapter One is childhood, where the focus is on growing up and receiving an education. In Chapter Two we become adults and focus on work and family responsibilities. Then there is Chapter Three. Ideally, in this final chapter we have a chance to discover our inner wisdom and explore our authentic selves. As we grow older and wiser, our focus during this period often turns to thoughts of retirement.
Retirement is actually a relatively recent concept in western society, introduced by German Chancellor Otto von Bismarck in 1889 as a government program to support citizens aged 70 and older. Before this point, regular payments were mostly reserved for those who had served in the military; everyone else simply worked until they died. With the advent of programs such as Social Security, corporate pensions, and 401(k) or IRA accounts, the notion of retirement has become more mainstream. For many older workers the American dream now includes the idea of leaving the workplace to live out their “golden years” in leisure.
Even though it didn’t necessarily happen the way I planned, I consider myself fortunate that my Chapter Three has also included retirement. And, while I realize that it is not necessarily an option (or even a desire) for everyone, I have learned that a successful retirement requires a bit of forethought and planning, so I’d like to share a few tips that I’ve picked up along the way.
Preparing Yourself Financially
Honestly, I was a late bloomer when it came to saving for retirement. It wasn’t even on my radar until I got married to an older man in my mid-forties and realized that he would probably want to retire in approximately 15 years. So I began to frantically research everything related to finances and stumbled upon Mike Piper’s book Can I Retire? Managing Your Retirement Savings Explained in 100 Pages or Less. It outlined the basic steps to making a financial plan for retirement, which was truly a revelation to me because it transformed what was previously a dream into a plausible reality.
From this book (and other financial blogs I began subscribing to) I learned the importance of cultivating multiple income streams to support us in retirement such as social security, savings and investments. Piper and other authors extolled the virtues of investing in low-cost index funds and benefiting from the compounding interest over time. Their writings also made me realize that I was entering my peak earning years so this would be the best opportunity to maximize my savings rate. Once I turned 50, I was able to take advantage of the increased “catch up” IRA contribution limits.
My husband and I decided to forgo new cars or expensive vacations, instead choosing to pay off our debts and live as frugally as possible. Our plan was sailing along nicely, until disaster struck. We both encountered abrupt career changes in the same month—a reorganization for me and a layoff for him. Ultimately, we were forced to retire much earlier than we had hoped, which put a squeeze on our finances. Similar to many retirees, I ended up taking a part-time job for the first several years to help pay the bills until we qualified for social security. Thank goodness we had at least put a basic financial framework in place so we were able to move to the next step.
Preparing Yourself Mentally
Deciding to retire can be daunting and complex, and it is not always something that is within our control. Similar to my own situation, this decision is frequently made for older workers when their employer downsizes or undergoes a reorganization. Others are forced to drop out of the workforce due to health issues or caregiving responsibilities. No matter the path taken, once in retirement many people struggle with the loss of identity and feeling of purpose that a daily work structure once provided.
Preparing yourself mentally for retirement means that you’ll need to envision what life will be like outside the confines of the workplace. After experiencing the initial shock of retirement, there will be a period of reorientation. This is a chance to really think about how you want to spend your newfound free time. It is a chance to address life’s existential questions such as, “Who am I now? What do I want to do? How will I find meaning and purpose in this new chapter?”
These are challenging, life-defining questions that take time to figure out. To help with this process I read the book Taking Stock: A Hospice Doctor's Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life* in which Dr. Jordan Grumet shared reflections based on conversations with patients who were in their final stage of life. One commonality he observed was that identity, purpose, and connection are essential elements to feelings of overall satisfaction, both before and during retirement. His book contains thoughtful exercises that urge readers to reflect on our own priorities in order to live meaningful lives with minimal regrets.
I certainly don’t have the same expertise as a hospice doctor. But I’ve observed that people seem to be happier when they retire TO something, not just FROM a job. New areas of interest in this stage of life might include taking on a long-delayed passion project, hobbies, nesting, travel, fitness, learning, and volunteering. My own experiences have also included caring for aging friends, or those who become ill, and serving as family for others who may live alone. Whatever area you choose, it’s important to develop a sense of purpose—a reason for getting out of bed each day—spending time in a way that is important to YOU and fits with your personal values.
Preparing Yourself Physically
A final area to consider is making sure you are prepared physically to enjoy retirement. What good is having a pile of cash saved up if you are not healthy enough to use it? What use is retirement if you can’t move or participate in the activities you planned? Do you really want to be on multiple medications and spend all your time at doctor’s appointments? While some decline and slowing down is an inevitable part of aging, it is also possible to leverage a more positive outcome.
Functional longevity is connected to brain health, which in turn is connected to vascular health. We can reduce major vascular risk factors by prioritizing a nutritious diet and avoiding smoking or excess alcohol. Sadly, I experienced firsthand the consequences of these risks as I watched my husband slowly deteriorate physically and mentally from an unhealthy lifestyle. He was no longer able to do the things he loved and died barely five years into retirement.
This definitely caught my attention, and I have since learned that strength, balance, flexibility, and mobility can impact our emotional well-being. The inevitable loss of muscle mass and mobility with age can be counteracted to a degree with weight-bearing exercises and stretching or yoga. Maintaining a healthy body weight is key to avoiding conditions such as diabetes, hypertension, and joint strain. It’s also important to get adequate sleep and develop an anti-stress regimen, especially for us post-menopausal women.
I know this may sound like a lot to keep track of, but the upside is that focusing on daily wellness tasks can be one way of providing us with a sense of purpose. Activities such as exercising or preparing meals with other people can also provide an opportunity for social connection. Prioritizing at least a few of these wellness activities may lead to a retirement experience that results in fewer copays and regrets.
Final Thoughts
One advantage we have as we enter Chapter Three is the ability to tackle situations armed with the benefit of experience, insight, and wisdom that comes from being a more mature woman. I hope sharing a few small lessons I’ve learned will be helpful as you navigate your own path forward which may (or may not) include retirement.
*Proceeds from the purchase of these books will be used to support I Start Wondering's programming for women who have reached mid-life and beyond.
Thank you, Kaye, for offering this insightful column. Life often surprises us and as a result, our well-thought-out timelines don't go as planned. Your advice about steps to take to prepare for this major life transition will resonate with many women who are beginning to consider retirement (or find themselves suddenly and unexpectedly taking the plunge)!