Remember those anti-drug commercials of the 1980s with the egg being cracked into a frying pan? “This is your brain…this is your brain on drugs… any questions?”

What if something similar happens to your clients as soon as they start retirement? What if, on the very day that they leave work, their brain begins to shrink and shrivel, taking them on a slow march to forgetfulness, confusion, and even Alzheimer’s or dementia? “This is your brain…this is your brain on retirement…any questions?”

It’s a startling thought and topic that a growing number of boomers and seniors are concerned with. In a 2013 study, the Centers for Disease Control and Prevention found that nearly 13 percent of people 60 or older reported confusion or memory loss occurring more often or getting worse over the past 12 months. Another Met Life/Harris poll suggested that boomers fear memory loss ahead of both cancer and heart disease.

While studies and polls like these give us a glimpse into what’s going on with boomers and seniors, they only paint a small picture of the real potential impact. The entire global economy is being affected by the aging body and mind. The worldwide population of people over 80 is expected to more than quadruple to nearly 400 million by 2050. That means the aging brain will become problematic and an increasing burden for individuals, couples, the health care system and financial professionals.   

Therefore, advisors need to become more aware of the impact that a client’s brain, or more specifically, their memory, can have on their life after work. Advisors don’t need to become neurosurgeons but should understand a few key concepts to help clients connect the dots between what is going on with their mind and the impact it has on their everyday life.

The interesting thing about the brain is that its functionality peaks in our early 20s and gradually declines for the rest of life. In our late 30s and 40s is when many people start to notice subtle changes. Forgetting names is typically the first thing we notice, followed by misplacing things like our car keys, glasses or wallet. Many people also begin to have those “tip of the tongue” experiences where they know something or someone but just can’t seem to recall it, and they may even walk into a room and not remember what for.

There are several natural and common causes for mental decline including decreased blood flow to the brain as well as slower production of hormones and proteins that protect and repair brain cells. We also know that the region of the brain that plays a key role in the formation and retrieval of memories, the hippocampus, deteriorates with age.

I don’t know about other advisors, but some of my clients can’t get their hands around terms like alpha and sharp-ratio, making a discussion on things like the hippocampus or beta-amyloid, seem even more difficult. But it’s actually not that hard or difficult if you can put things into the right perspective for them. 

You see, understanding how clients form and retrieve memories is important because we use them (memorable events) to measure time. You have probably heard a client remark, “Time is just flying by.”  The issue at hand is that older, retired clients generally experience fewer memorable events. Not having, and being able to recall recent or past travels, the books and movies they enjoyed, the conversations they had with their kids, or the look on their grandkids face at their last birthday, can make it feel as if the time between two points is much shorter than it actually was. 

Fewer memorable events can cause a client to feel like their life doesn’t have much value and cause them to feel lost, lonely, and like their life doesn’t have much value.  

The harsh reality that clients face is that fiercely independent baby boomers who struggle with their memory will not only be forced to give up their freedom but will also be robbed of their personality and connections.  For the most part, our memories define who we are and give our lives meaning. They are what binds the past with the present and serves as the basis for our everyday decisions, and how we find satisfaction in life. 

It’s also important for advisors to understand that a client’s ability to learn and remember is limited by the accuracy of their senses. Our vision, hearing, vision, touch, smell and taste are the bodies detection system that provides valuable input. Therefore, when they begin to fail and work less effectively, the brain loses crucial data it needs to help guide us in our actions and behaviors.

On paper, it can look and feel like clients should just prepare for the worst and resign themselves to the ravages of age. But what they need to do instead is recognize that the brain has the ability to adapt to its environment. Therefore, if a client is in a challenging environment, their brain will respond accordingly by creating new memories and connections between brain cells. As a result, the speed with which they process information and respond to it, stays higher instead of just falling off. 

While advisors don’t necessarily need to add “Your Brain and Retirement” to their services list, they can watch for clues in what clients say and do. One spouse of a client recently remarked to me, “I got my smart husband back,” after he decided to study and re-take a professional exam so he could practice law once again. For years, she complained that he was slowly disappearing, and she was losing interest in him.

Another client shared, “The mind is like a muscle, you have to work it out or it gets fat and slow. That’s why I work part time at 72…because I like to think, problem-solve and be forced to figure things about mentally.”

Those are positive signs that aging clients are aware of what’s happening and understand what they need to do. However, not every client is on the same page and the sooner they can be educated, or reminded, on how the brain and their memory can impact their life in retirement, the better. 

Fact is, if clients don’t have concrete plans to replace the mental tasks and challenges from work, their brain responds to a more sedentary, less challenging environment. Slowing down their lifestyle and exposing clients to a higher risk of developing dementia. Clients need to hear statements like that and, at some point, it should be included in the disclosures of every retirement plan. 

Important Warning / Disclosure:  Retirement should not be taken without a written plan to replace their work identity, stay connected and relevant, as well as keep mentally and physically sharp.

Crossword puzzles and hanging out with the guys once a week at the local coffee shop isn’t going to cut it. Retired clients need new experiences and skills to keep their mind active and engaged. Things like learning a second language, picking up a musical instrument, volunteering for a mentally stimulating job or part-time gig, or even journaling to help recall recent events can go a long way in helping clients fight off memory loss and brain atrophy.

Therefore, it’s more important than ever for advisors to understand what happens to a client’s brain on retirement. They need to not only be aware of how a client’s thoughts, habits and behaviors will impact their client’s memory as they age, but also how the normal aging process will impact it.

I don’t think we have to go as far as making anti-retirement campaigns with an egg or frying pan, but we do need to spend more time coaching clients on non-financial aspects like this.  

Robert Laura is the president of SYNERGOS Financial Group, the founder of RetirementProject.org and pioneer in Certified Retirement Coach training. He can be reached at [email protected].