Quick Summary: Successful retirement planning is about more than money, yet that’s all most people approaching retirement have considered. Pre-retirees need help to recognize the non-financial aspects of life after work-life.
You’ve probably provided lots of information on your organization’s retirement plan. And in today’s economic climate, it’s easy for finances to take center stage. Yet it’s generally the non-monetary side of retirement that throws new retirees into a tailspin.
When you help your pre-retirees look at quality-of-life issues, you can generate good will and perhaps even prevent a “brain drain” at your company. Adding “life planning” to your retirement education mix opens the door to discussions about how employees might phase into retirement, rather than cutting all work ties. For many employers, phased retirement of experienced workers provides stability and an opportunity to transfer valuable knowledge.
If you have the resources, offering seminars with life planning experts is one way to help employees look realistically at their futures. But sometimes simply pointing out what they might have overlooked in their pre-retirement planning will help employees help themselves.
Here are a few food-for-thought questions to keep retirement planning well rounded:
What will you actually do with your time? Lack of a “daily grind” may seem like heaven now, but when there is no structure to the day, many retirees find themselves lost. Advise them to brainstorm all the things they’d like to do, then make realistic lists based on health, finances, location, and other considerations.
Have you talked openly with your spouse and other family members? Married couples often don’t anticipate how constant togetherness can change their lives and relationships.
How will you compensate for the loss of social contacts at work? A study by the University of Michigan found that the extent of a person’s social network—not wealth or health—is the primary predictor of satisfaction in retirement.
Have you explored part-time work options? Many baby boomers anticipate a new career after retirement (sometimes referred to as an encore career). If they want to change fields, doing their homework well in advance is essential.
Have you created a financial plan? Finances certainly can’t be ignored, so be sure pre-retirees start budgeting early. There’s plenty of online help, and plan providers are a great resource.
Next Steps:
• Take a close look at the retirement planning help you provide. Is it well rounded?
• Consider creating a retiree network at your organization. Sponsor programs that allow retirees to share their retirement dos and don’ts with those approaching retirement.
• Direct employees to Web sites that offer retirement planning questionnaires, calculators, tips and guidance (for example, AARP, the National Council on Aging, and Social Security).
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