People generally don’t go into retirement expecting their work assets to become a liability, but since everyone has painted this rosy picture of retirement where everything is going to be alright as long as they have enough money, they are caught off guard by it.
Poor Communication
The primary reason for most retirement failures can be traced back to poor communication, or the inability of a client to share what they are thinking and feeling about this next phase of life. The issue at hand is that the term retirement conjures up different definitions and expectations for everyone.
An adult child may assume that since their parents are wealthy enough to stop working, they can afford to support them or finance their dreams. Siblings may feel that since they have more time, they should be taking care of mom and dad more, and friends may suggest that keeping in touch and making future plans are on them since they have the luxury of sitting around and doing nothing all day.
That’s why it’s so critical that clients discuss what retirement really means with those around them to help set clear expectations and boundaries. As you might expect, this is even more important for couples. Both generally have their own thoughts and ideas about what retirement will look and feel like, the problem is, they haven’t taken the time to discuss them and find middle ground. As a result, arguments and disagreements come about more frequently and require very little fuel to get started.
It’s also important to point out that married clients struggling with a retirement transition may need a third party to help them address or resolve issues with poor communication. A coach, counselor or therapist can often help couples get on the same page, as well as help other family members understand the clients position and point of view.
Overall, failing at retirement is often characterized as an issue with money or attributed to an event like a divorce, failed business or cost of adult children. While those are very real factors that can impact a retirement transition, advisors need to be ready to dig deeper and become more aware of the root causes of these issues.
Robert Laura is the president of SYNERGOS Financial Group, the founder of RetirementProject.org and the creator of the Retirement Wellness Marketing Program for Advisors. He can be reached at [email protected].