Financial
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RETIREMENT
? K C A T T A C PANI 4 Questions to See if You Are Emotionally Ready to Retire?
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etirement brings many changes which can affect your emotional well-being, for better or worse. Retirement in the 21st century is different than it used to be. Retirement lasts longer, thanks to a longer average life expectancy, and there are more opportunities for how to spend that time. While retirement planning concerns generally revolve around your finances in retirement, determining whether you’re emotionally prepared for this major milestone in life is just as important. One thing we’ve observed in our 50 years of working with families at this transition point: many retirees forget to consider the emotional changes retirement can have on a person, and this can by Lance Bowman, CFP® result in loneliness, loss of purpose and Wealth Advisor, Linscomb & Williams even depression. If your retirement date is nearing, there are 4 important questions you a fit for you. For example, spending your days at home may sound like a dream need to ask. while you’re commuting to and from Q1: What Will You Do? work, but being home alone day after There are certain clichés about how day can get old quick. retirees spend their time – enjoying an It’s also important to address how obligation-free life and simply doing the pandemic has affected your plans. If “nothing,” working on their “bucket” you’re expecting to travel, for example, lists, golfing, visiting with grandkids, is that still possible? Are you still able having lunch with friends, traveling, to visit family or friends? Find out what etc. However, these are clichés because, your retirement personality is, and then while they are common ways retirees do discuss your plans with a financial adviin fact spend their time, they may not be sor to see if those plans are realistic. 20 | HEIGHTS | September + October 2021
Q2: Do Your Finances Support Your Plans? Work with your financial advisor to ascertain how much money you will have to live on in retirement, because this will most certainly impact what you can actually do. Retiring and not being able to carry out the plans you had in mind can be emotionally devastating. Talking to a financial advisor early on can help you determine pitfalls in your plans as well as ways to “find” more money in your budget to make your plans a reality. Downsizing or relocating, for example, may allow you to improve your financial situation. Relocating is common among retirees, whether it’s to be closer to family, into a senior-living facility or to an area you’ve always dreamed of living but couldn’t because of work obligations. However, a move can be a financial plus, but it can also drain your savings and shortchange your future if you forget to consider cost of living changes. Senior living facilities, for example, can be expensive. If you plan to downsize, your monthly budget could benefit. Keep in mind that downsizing can also have emotional costs, especially for new retirees who aren’t accustomed to spending large percentages of time with a spouse or other family members.
