Retirement - Life Act II
(excerpts from Money Magazine Sept 2006 issue)
When Work Ends, Life Begins
The Key to a Dream Retirement: Figure out not just how to pay for it, but how you'll live it. 42% of retirees who keep very active say they're quite satisfied with their lives vs. only 25% of inactive seniors.
Think about preparing for retirement, and one thing comes to mind: Money. How much will I need? How do I ever get that much? How will I make it last? And, of course, you should be asking these questions. But if they're all you ask, you're literally missing the opportunity of your life. As life spans lengthen, there's a fair chance you'll have two or there decades ahead of you after you retire. In other words, you could spend almost as much of your adult life retired as you spent working. That's ample time to indulge your passions and focus on the things you love to do rather than those you have to do - but way too much time if you haven't given any thought to what you'll do with it.
"This stage of life can be simultaneously thrilling and terrifying, " says John Gomperts, CEO of ExperienceCorps, a national volunteer program for people over 55. "Many people find it hard to imagine a life not structured by career - it's uncharted territory." You need to think as hard about how you'll enjoy these years as you do about how you'll pay for them. The time to start thinking is now.
Lesson 1: Figure out what you enjoy
The retirement process starts inside you head, ideally a few years before you plan to call it quits. Begin by reflecting on your life. "In order to find your drea, you need to think about the experiences that you've really enjoyed," says Dick Bolles, author of the best-selling career guide "What Color Is Your Parachute? The get started, try this exercise: Write down seven occasions during which you felt particularly happy and engaged. Then look for patterns. Was it interaction with people that made you feel satisfied? Taking on a challenge? Helping others? For inspiration, talk to happy retirees about what they're doing. Or spend a few hours on your own in the library to see what subject areas you naturally gravitate toward. "It's helpful to get away from the intensity of your everyday life to think about what's next," advises Ron Manheimer, executive director of the North Carolina Center for Creative Retirement.
Lesson 2: Readjust your "portfolio"
You may discover that there are several areas you're interested in pursuing. No problem In fact, the more well-rounded you are, the more connected you'll be, and the happier you'll feel. "People often talk about wanting balance in their lives, even when they retire," says Manheimer, "Your don't want to get so caught up in one thing that you neglect other areas of get so stressed that it feels like work." Just as you periodically rebalance your investment portfolio, you must readjust your schedule as you near retirement. Manheimer suggests drawing a pie chart of how you currently spend your time. Consider the following categories: work, family, rest, travel, community and home maintenance. Then sketch out how you envision dividing your time among those activities - and new ones - when you retire. This will help you prioritize your passions, and help to ensure that you'll get the chance to indulge them.
Lesson 3: Test-drive your fantasy
Maybe you've thought about traveling full time. Or opening a coffee shop. Or starting a nonprofit. These undertakings can seem intimidating, but you needn't make a full commitment straightaway. Instead, test the waters: Talk to people who are doing what you want to do, run the numbers to estimate costs, or try it on a limited basis (take a few long trips; work part time in a café; shadow a full time volunteer at your favorite charity.) This way, you'll get a real sense of what it'll take to pursue this ambition - and whether you'll really like it after all. Says Manheimer: "The more you delve into your dream before retiring, the more likely you are to make a successful transition."
Lesson 4: Keep setting new goals
If you're not striving for something, you may be stagnating. So it's important to set some objectives for yourself - jus as you did in your working life. What do you want to accomplish? "Goals represent your hopes and dreams," says Bolles. "And they make life more fulfilling when you achieve them." Periodically update your life plan, asking yourself" Am I still happy with this? Is there something else I'd like to achieve? Keep aiming higher, and you'll always have something to look for
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