Graham agreed, especially about a person’s fitness. “We used to talk to people about getting physically fit before they retire. The notion that you’re going to get fit after retirement, it just doesn’t happen.”
Graham noted that 4.4 million Americans over the age of 65 struggle with drug and alcohol problems, and divorce rates are highest among those over retirement age. She also said that nearly 16 percent of all suicides are committed by people over the age of 65, the highest of any age group. Retirees and near retirees may struggle with fear and depression after the loss of a spouse or loved one, the loss of their mobility, or the loss of their mental faculties.
These negative health issues are compounded by a positive one—longevity.
“There are a lot of misconceptions about longevity,” said Laura. “People assume that if you’re living longer, you’ll be incapacitated for a longer time, but the truth is that longevity has given us the ability to supercharge our lives in our 50s, 60s and 70s. People have this capacity to reinvent themselves, but they’re still dragged down by the idea that ‘If I’m 65, it’s time for me to slow down.’”
Addressing a person’s non-financial well-being could be a value-add for advisors, said Graham, but the financial industry has traditionally avoided taking a more holistic view on retirement.
Truly incorporating a person’s physical, mental and emotional health into a retirement plan will require tools, resources and software beyond what is currently available to advisors, said Graham.
“How many advisors have some kind of discovery tool or process outside of traditional financial planning? How many have a way to shift the conversation to these life matters for retirees? For those who don’t, that’s what we’re advocating,” said Graham. “The clients really need us for this.”
She recommended a mentorship program where clients on both sides of their retirement dates can counsel each other about their expectations and challenges, while Gorman and Laura said that advisors should consider incorporating behavioral, health and fitness counselors into their network of centers of influence, or develop such specializations within their firms.