5 keys to a great Retirement

By Fritz Gilbert, RetirementManifesto.com

Special to the Financial Independence Hub

Can you imagine having the opportunity to study two decades worth of retirement research, and gleaning the keys to a great retirement from the experts?  I recently had that opportunity when I took the time to read a 90-page study titled “The Experience Of The Transition To Retirement,” a study that filtered through 1,800 research papers!

Today, I’m summarizing the results from that study and presenting to you 5 Keys To A Great Retirement, along with additional findings from this extensive research.

Using Research To Improve Retirement

The goal of this research project was to understand what led to successful retirement transitions and to “better understand how best to help individuals navigate this transition”, as well as “how to improve the quality of post-retirement life”.   Valuable information from which you, the reader, can benefit.

Before I present The 5 Keys To A Great Retirement, there are some findings in the study which I found interesting.  For the sake of brevity, below is a list in bullet form.  Note that the study did focus on gender/socioeconomic/ethnic/cultural differences, so it’s best to read the findings with that in mind:

• 25% of retirees experience difficulties in the transition to retirement.
• Men tend to have more positive attitudes toward retirement and be more engaged in planning for retirement than women.
• Based on the studies, women appear to have greater difficulty in adjusting to retirement than men.
• Those in higher Socioeconomic positions tend to work longer than those in lower positions.
• Being married is associated with greater preparedness and a more proactive approach to planning for retirement.
• Where work is important to an individual’s identity, retirement causes more conflict and anxiety.
• Nearly half of those aged 50 and over said that they expect to retire later than they had thought they would.
• Governments from around the world have enacted policies that seek to reverse an ‘early exit culture’ and extend the length of people’s working lives, maintaining economic productivity and reducing social spending.

Yes, there was a lot of interesting information in those 90 pages (trust me, I read every page). Boiling it all down, below are my takeaways on what comprises the 5 Keys To A Great Retirement.

1.) Control Your Destiny

The first finding was that those who felt they had the most control over their retirement decision were also those who most enjoyed their transition into retirement.  To quote the study:

“One of the most consistent and convincing findings in this review is that a sense of control is associated with positive retirement outcomes.”

While you may feel that you don’t control your retirement as much as you’d like, the reality is that there are a lot of areas in your retirement planning where you can influence the results.  Simply taking the time to prepare for your transition into retirement (See Key #2) is, in itself, exerting some control over your destiny.

Don’t leave your retirement to chance.

Given that you’re reading a blog on retirement, you’re likely ahead of your peers in tackling the first of these Keys To A Great Retirement.  You’re taking control of your retirement, and your retirement will be better as a result.

2.) Imagine What Your Retirement Will Be

The second of the 5 Keys To A Great Retirement was the finding that those who took time before retirement to imagine what their retirement would be were also those most likely to have a good retirement.  Think beyond finances. Finances play a small role post-retirement, and yet most folks think most about the financial implications of retirement when preparing for the transition.

Broaden your scope, and spend time thinking about what you want your retirement to be.  Dedicate some time, while you’re still working, to take a Test Run At Retirement, like my wife and I did.  Take some time to think about:

• What will your life look like when work is no longer mandatory?
• How will you spend your time?
• What will give you Purpose?
• Where will you live?

The research indicates that retirement planning “has potentially important consequences,” not just for financial security in retirement, but also ” in promoting satisfaction with, and adjustment to, the retirement lifestyle.”

It’s been proven by the research that planning for retirement while you’re still working is one of the best things you can do to ensure that you’ll have a great retirement.  Make it a priority, it’s one of the keys to a great retirement.

3.) Develop Retirement Goals

Retirement is a luxury.

For the first time since you started school, you’re free to do whatever you want with your life.  It’s also the first time that you’re 100% responsible for deciding how you’re going to spend your time.

Are you going to Die While You’re Living, Or Live While You’re Dead?  Decide what retirement means to you, and develop some goals to help you prioritize the things which are most important to you.  Focus on what matters to you, and create a plan to do the things you want to do, and avoid doing the things you don’t.

Create an action plan to move your retirement From Good To Great.  Create your own 10 Commandments of Retirement, and outline what really matters for your life in retirement.  Recognize that your role and identity will change from when you were a worker with employer-defined goals.  You’re now Independent, and you should define your own identity, supported by your own goals.The third of the keys to a great retirement is to recognize that you’re entering a new phase of Independence in retirement and to create goals that support what you want your new life to be.

4.) Don’t Go Solo