Video: Are you looking at the big picture of retirement?
Did you know that the vast majority of people aren’t retiring from something? They’re retiring to something. In fact, according to certain studies, only 5% to 12% of people retire because they dislike their job.
That’s why, in retirement planning, non-financial components could be just as important as financial ones.
Here are three that you might want to take into consideration.
The first is time. Retirement might free up a lot more of it than you imagine. Since you might have even more time than money, some planners recommend building a project portfolio, modelled something like an investment portfolio.
The second is identity. Retirees sometimes find themselves disoriented when the professional position that helped to define them is suddenly gone. If you had a business card for retirement, what title would you put under your name?
Finally, the third component is lifestyle. Regardless of what your financial assets might allow, how would you really like to live during the last third of your life? Talk to your advisor about getting your finances in line with what matters even more: your life in retirement.
The following sources were used to prepare this video:
Accounting web, « How to Discuss Non-Financial Aspects of Retirement ».
Carolina Living Choices, « 5 non-financial factors for a fulfilling retirement ».
Center for Retirement Research at Boston College, « How do non-financial factors affect retirement decisions? ».
Journal of accountancy, « Why you should discuss the nonfinancial aspects of retirement with your clients ».
My Life’s encore, « 5 Non-Financial Factors for a Fulfilling Retirement ».
Retire Happy, « Building a retirement vision » ; « The top 5 new retirement trends and how they will affect your retirement ».