A Holistic Retirement Strategy Incorporates Both the Financial and Emotional Challenges of Life After Leaving the Workplace

While people do a lot of financial planning for retirement, many aren't prepared for emotional and psychological challenges they will face when the time comes. With Baby Boomers streaming into retirement at a rate of 10,000 daily, a comprehensive retirement plan should be a holistic one.

When it comes to retirement planning, no matter how much financial preparation is made many people discover they are not as prepared as they thought they would be for the emotional and psychological changes that occur when the time to leave the workplace finally arrives. According to figures released by the American Psychological Association, a large proportion of the 70 million U.S. workers who retired between 2005 and 2015 discovered that unexpected emotional difficulties in making the adjustment to retirement may not be entirely rooted in financial preparedness.

So many people consider retirement to be a finish line, even though many people have no plan for what exactly they want to do once they arrive. For this reason, a growing number of financial advisors who specialize in retirement planning are addressing the psychological aspects of retirement as well as the financial aspects in devising a plan for the new life their clients will be entering.

Traditionally, discussions on anxieties surrounding retirement planning have focused on finances; many aging Americans worry about depleting their retirement savings too soon. At a time when people are living 20- to 30-plus years longer than any previous generation, this is a valid fear, since with aging comes a greater possibility of experiencing health issues that require expensive medical care. Without proper planning, one medical event can drain a nest egg in no time.

According to Jeffrey Imber, Ph.D., an investment advisor, insurance professional and former psychologist in Ann Arbor, Michigan, the most successful retirement plans are twofold: helping individuals determine how to spend down their nest egg effectively to make it last through what could be several decades, and factor in a lifestyle plan that will prepare them for a smooth emotional transition into this new phase of life.

“There are a lot of people who haven’t thought through their retirement plans beyond the financial aspects,” he says. “As an advisor, I find it just as important to focus on the emotional stages of retirement—dealing with the uncertainty of the future, and helping them figure out what they envision their lives to look like in retirement in order to help them prepare a comprehensive strategy.

“Money and meaning go together—money pays for experiences that provide meaning. Money is the core survival issue, and once that’s solved, the next step is establishing how to manage one’s money in a way that is meaningful and gives one purpose in life. The best approach is to talk through life plans and offer financial coaching and advice to create a purpose based retirement.”

Imber says that along with establishing a comfortable financial plan, the objective is to help individuals consider and achieve their retirement goals.

“Do they want to travel, spend time with family, volunteer, explore new hobbies? In addition, part of a retirement advisor’s job is to help clients plan for the unexpected changes that come with retirement,” he says.

Most retirement advisors can offer a multitude of products and resources to plan for financial freedom in one’s golden years. For instance, people who worry that their 401(k) plan or savings won’t last the duration of their retirement can discover what a powerful tool a fixed income annuity can be in easing certain financial anxieties by providing a dependable income stream. Maximizing Social Security distributions, minimizing taxes, keeping pace with inflation, re-examining risk tolerance, preparing for the high costs of potential long-term health care and medical expenses, estate planning and legacy planning —these are just a few of the “givens” in successful retirement strategy planning.

But even the most comprehensive financial strategy will not address all challenges associated with life after work, like the type of lifestyle one visualizes for themselves and their life partners in retirement.

Establishing a holistic retirement strategy is all about planning for the big picture.

The general consensus among financial advisors holds that three things create happiness in retirement: physical health, guaranteed income stream and a life plan for meaning and purpose.

Understanding retirement, like all stages of life, is a process that goes beyond the financial challenges is key to success. The better prepared for the different and often difficult emotional phases that are part and parcel to retirement, the more likely one is to be able to adjust, be flexible, and most importantly, enjoy these well-deserved golden years.

Contact Info:
Name: Jeff Imber, Ph.D., Investment Advisor Representative
Email: Send Email
Organization: Imber Wealth Advisors
Phone: (734) 769-1719
Website: http://www.imberwealth.com

Source URL: http://councilofeliteadvisors.com/liftmedia

Release ID: 98462