Keen On Retirement™

Every day in retirement presents a new set of choices. After all, once you don't need to work, you're in charge! A full day at the golf course? Absolutely. A spontaneous weekend getaway with your spouse? Why not? Grabbing coffee with friends, or sitting at a table solo to enjoy a good book? It's up to you. And if you don't like how today turns out, you can always make different choices tomorrow. However, there are some choices in retirement that don't come with easy do-overs. And the less reversible a decision is, the more important it is to think through all of your options and make the right choice the first time. Let's look at where some key retirement decisions fall on the reversibility spectrum.

What's on your bucket list for retirement? Globe-trotting vacations? Long afternoons on the golf course or in your fishing boat? Relocating to a beachfront condo or a cozy cabin in the woods? That vision can motivate years of saving and planning. But the retirement you enjoy may look different from the one you first imagined. A good financial plan doesn't lock you into one version of retirement. It gives you room to adjust as your life changes. As I've discussed throughout this six-part blog series on The Adaptable Retirement, you don't need to predict exactly what will make you happy in retirement. You need a plan that helps you evaluate and support changing priorities.

In financial planning, we sometimes refer to your working years as the "accumulation years." A large part of your time is spent working and earning so that you can support your family, achieve milestones like buying a house, and secure your financial future. But during those years, you're "accumulating" more than money. You're gaining relationships, hobbies, interests, skills, experiences, memories, and, yes, possessions. By the time you reach retirement, your life is probably as full as it's ever been. Too full, maybe. As you move through the various stages of retirement, your identity is going to change along with your interests and priorities. And part of change is letting go so that you can make room for new people and new experiences that are going to make every step of your journey more fulfilling.

A recurring theme in my series of blogs about The Adaptable Retirement is that your financial plan has to account for a constant that seniors often overlook. Change. As you near the end of your career, I doubt that you have the exact same goals, relationships, and interests that you had when you started working, or when you and your spouse first met. What you do every day has changed. Who you do those things with has changed. How you spend time when you are and aren't working has changed. Your body and health have changed. Your understanding of the world and other people has changed. In many ways, you’re a different person with a different identity. And this continual process of growth and renewal doesn't stop when you stop working.

In my previous post, I explained why a 30-year retirement plan cannot be treated as a "one and done" checklist. From unexpected health events to shifting personal priorities, your life should determine how and when your financial plan needs to adjust, not the other way around. But not every change requires a new financial strategy. And that's where the true tension in retirement planning lies. On the one hand, underestimating the effects of a meaningful change could put your long-term security at risk. On the other hand, overreacting to every market dip, unsettling headline, or argument with your spouse about money can cause lasting damage to your wealth. The goal for retirees should be thoughtful adaptation, not constant reaction. Before you overhaul your portfolio, ask yourself these six questions to determine if your plan truly needs an adjustment.

Your life and career haven't progressed in a straight line. Retirement won't either. But that's a misconception, or maybe a hope, that so many folks build into their retirement plans: that, after decades of ups and downs, happy surprises and serious challenges, retirement is going to coast along on autopilot. Hopefully, you have decades of retirement ahead of you. And those years are going to be just as unpredictable as any other period of your life, with one major new variable guaranteed. You won't have a paycheck from employment to rely on. Without the reassurance that more money is coming at the end of the month, too many seniors start making emotional money moves in the moment, whether they're facing a market dip or an unplanned home repair. That's not the kind of adaptability I was describing in part one of this blog series. I'm suggesting that if you view retirement planning as an ongoing process, you should be able to reroute when necessary. And, just as importantly, you'll have a decision-making framework that will help you distinguish between genuine warning sirens and noise you can ignore.