Retirement today is a lot like an iceberg, where 90 percent of what’s really taking place is below the surface, absent from ordinary investment conversations and mainstream retirement planning. Almost 100 percent of retirement planning is focused on financial issues and concerns, yet about 99 percent of life in retirement has very little to do with money. The retirement issues and opportunities that were never part of advisor/client discussions are now being thrust into mainstream planning; not necessarily by choice but because the new Age of Retirement requires a new and different planning path.
Gone are the days of retiring at 65, living on Social Security, a company pension and personal savings only to die at age 68. The advisor is now responsible for helping retirees prepare for the things that no one tells them about.
1) Health Is Wealth
Much of retirement talk today is focused on a client’s “number”--the amount of money a person needs to avoid outliving it. But money can’t buy happiness or good health, the latter of which carries the unfortunate stigma of being an asset that isn’t prized or respected until it’s gone. People might be living longer, but that doesn’t mean all those extra years will be healthy ones.
That’s what makes it so important for clients to move beyond the dollars and cents of retirement planning and focus on another set of numbers, including cholesterol levels, fasting blood sugar, body mass index (BMI), blood pressure and resting heart Rate.
These are the new retirement numbers that both advisors and clients need to know. The extra time that clients have in retirement won’t automatically provide the motivation or habits that will make them healthier than when they were working. Therefore, advisors need to encourage clients to start developing healthy habits now, such as cooking healthy meals during the week, waking up early for a walk, or enrolling in a Yoga or Tai Chi class.
2) Time Is Of The Essence
Typically, traditional retirement planning helps retirees envision romantic walks on the beach, worldwide travel, watching their grandkids graduate from college, and all things wonderful during the next 20 or 30 years. Despite all the rosy pictures, though, at best the only guarantee is the breath they’re currently taking.
Don’t allow clients to create a retirement plan based on the empty promise of time ,for as Benjamin Franklin put it, “You may delay, but time will not.” Encourage clients to avoid postponing the things that are important to them, and to treat the time they have in life like a precious commodity that only has a present value.
The reality is, we live in a constantly deteriorating world, so it’s important not to neglect opportunities to make the most of the lives we have been given. Help clients identify and focus on the things that cost little but provide a big return on the time invested, and hopefully they will never feel that the things they put off until retirement are no longer attainable.
3) There Is A Dark Side
Deep in the shadows of retirement lurks a hidden epidemic. It’s a chilling reality, wherein powerful forces such as addiction, mental illness and suicide threaten clients just as much as running out of money and fighting inflation. The research and statistics are eye-opening:
The number of retires with alcohol and other drug problems is expected to more than double by 2020, nearly 2 million Americans age 65 or older now suffer from full-blown depression, and suicide rates are highest among the age group 65+. These unsettling realities can be triggered by a number of normal life events associated with retirement, including loss of a spouse, an unexpected medical diagnosis, isolation from family and friends, and the natural aging and dysfunction of the body.
Retirement is a phase of life that many people look forward to, but without a plan to replace their work identity, stay socially connected, as well as mentally and physically sharp, a client’s golden years can quickly lose their luster and become consumed by the dark side of retirement.