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FOCUS RETIREMENT PANIC ATTACK?

4 Questions to See if You Are Emotionally Ready to Retire?

Retirement 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 result in loneliness, loss of purpose and even depression.

If your retirement date is nearing, there are 4 important questions you need to ask.

Q1: What Will You Do?

There are certain clichés about how retirees spend their time – enjoying an obligation-free life and simply doing “nothing,” working on their “bucket” lists, golfing, visiting with grandkids, having lunch with friends, traveling, etc. However, these are clichés because, while they are common ways retirees do in fact spend their time, they may not be a fit for you. For example, spending your days at home may sound like a dream while you’re commuting to and from work, but being home alone day after day can get old quick.

It’s also important to address how the pandemic has affected your plans. If you’re expecting to travel, for example, is that still possible? Are you still able to visit family or friends? Find out what your retirement personality is, and then discuss your plans with a financial advisor to see if those plans are realistic. 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.

by Lance Bowman, CFP® Wealth Advisor, Linscomb & Williams

Q3: Who Will You Spend Your Time With?

This may sound like a trivial question, but it’s important!

So many retirees assume they’ll spend time with their family or close friends, but often, those people are still working, or have plans of their own. If your plans revolve around specific people, make sure they’ll actually be available. If they will be, make sure COVID-19 hasn’t changed that. In today’s world, we can spend time with individuals without being in the same room as them. But for many people, that’s not enough. Not having anyone to spend your free time with could inspire you to relocate. Do your finances allow for that? Remember, retirement planning in Houston may look different that retirement planning in another area.

Another available option is to work longer. When work is a big part of your life, and therefore, your identity, you may not want to retire as soon as you thought. There are pros and cons to working later in life. Q4: What Will Give You Purpose (Especially if Your Purpose is

Wrapped Up in Your Job)?

For many working Americans, retirement is a great opportunity to start volunteering for causes they find truly engaging. Volunteering can be a win-win in retirement because it not only gives retirees something to do but can provide a sense of purpose. If volunteering is part of your retirement plans, here are some tips to help you get started: 1. Know why you want to volunteer: Identifying your reasons can help lead you to the most fulfilling positions. Choose a volunteer role that ignites your passion. Don’t fall into the trap of volunteering somewhere just because there happens to be an opening. 2. Understand the qualifications for a specific role: It’s true that many organizations are happy for anyone to volunteer, but you can be choosy. Some organizations may ask too much of your time and energy. If it’s hard to work up the enthusiasm to show up at the volunteer site, then you’re probably in the wrong place. 3. Consider the buddy system: It can be decidedly easier to volunteer when you do so with a friend or spouse. 4. Research your options before you retire: Are you hoping to use your professional skills in a volunteer capacity? Talk to your co-workers about organizations they donate to, work with or are passionate about. Are there mentoring opportunities that may interest you?

Take care of your emotional health after you retire. Too many seniors fall into depression when they stop working. Take steps before you retire to mentally prepare yourself for all the changes. If possible, test drive your plans first.

Linscomb & Williams is a Houstonbased wealth management firm established in 1971.

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