Discover Decoding Retirement on popular platforms like Apple Podcasts, Spotify, or wherever you enjoy listening to podcasts. Transitioning successfully into retirement involves a range of strategies, with thorough preparation being key according to a leading expert. “The most crucial factor for success is the amount of time spent preparing before retirement, not just on financial aspects which are essential but also on the less obvious non-financial side,” says Fritz Gilbert, the author of “The Keys to a Successful Retirement” and a recent guest on Yahoo Finance’s Decoding Retirement podcast. Gilbert, also the creator of the Retirement Manifesto blog, emphasizes that dedicating time to plan for both financial and non-financial aspects increases the likelihood of finding fulfillment in retirement. Many individuals tend to neglect post-retirement planning until after leaving the workforce, but Gilbert’s early planning approach has proven beneficial for him. Tracking spending and setting realistic budgets are crucial steps recommended by Gilbert to ensure financial stability in retirement. According to Gilbert, tracking expenses, establishing a baseline, and adjusting for retirement concerns such as downsizing and travel are essential. Utilizing tools like the 4% rule can also aid in financial planning. Gilbert also suggests his “90/10 rule,” where he initially focused 90% of his time on money matters and 10% on non-financial aspects before retirement, but this shifted post-retirement. As finances become secure, the focus shifts towards finding fulfillment and joy in retirement beyond monetary concerns. Gilbert highlights the importance of this mental shift and the surprise it brought to his retirement experience.
Thinking about money becomes less of a priority once you settle down in retirement. Rediscovering your identity, purpose, and fulfillment is crucial. Work usually provides people with the “big five”: identity, structure, purpose, a sense of accomplishment, and relationships. Retirees must find ways to replace these aspects. Many struggle initially with finding structure, purpose, and relationships after retiring. It’s important to acknowledge the significance of replacing these aspects as they disappear post-retirement.
One way to replace the “big five” is by actively exploring your interests and curiosities. Gilbert suggests pursuing your curiosity and treating it as a learning process, recognizing that not everything will work out but enjoying the journey nonetheless. Retirement is not just an individual decision but impacts the entire household. It is essential to align expectations and discuss goals together before retiring.
Despite thorough planning, retirement can bring unexpected challenges. Transitioning from a saving mindset to a spending one can be difficult, especially for those worried about running out of money. Creating a retirement income plan using the bucket approach, where assets are divided into separate buckets for different time horizons or purposes, can help alleviate this fear.
In summary, retirement is a time to focus on personal growth, exploration, and aligning expectations with your partner. It’s a phase of life where finding new purpose, identity, and fulfillment is key to enjoying this stage of life to the fullest.
Gilbert’s retirement unfolded precisely as he had envisioned: embracing his curiosity and delving into new interests as he had planned. Yet, the journey his mindset has guided him on has been one of unexpected twists and turns. While he never anticipated having a woodworking shop or a dedicated writing studio, these ventures materialized through serendipitous opportunities, such as involvement in charitable endeavors.
“The most delightful surprises—and the greatest sense of adventure—have arisen from following the path paved by my curiosity,” Gilbert reflected. Moreover, he unearthed a source of profound satisfaction in retirement by redirecting his focus towards aiding others. According to him, retirement presents an opportune moment to give back, whether through mentorship, volunteering, or engaging in philanthropic initiatives.
“Take a closer look at those individuals who may be struggling,” Gilbert advised. “Find ways to utilize your time in a manner that benefits those in need.” Each Tuesday, retirement expert and financial educator Robert Powell equips you with valuable tools to strategize for the future on Decoding Retirement. For more episodes, visit our video hub or tune in on your preferred streaming platform.
