Ouch! That is heartbreaking stuff and actually something many people feel but would never admit to. Which is why helping people plan for the non-financial aspects of retirement is so important, especially if someone already has the financial piece put together.
Obviously, when people start nearing traditional ages like 62 or 65 and feel they have accumulated enough to make the jump, they are programmed to start considering retirement. But frankly, age and assets are not the best numbers to use for their game plan—they’re simply the anchors we use as part of our behavioral biases in making economic decisions.
These numbers should instead be used with these following factors. Clients who make a successful transition have found a way to:
• Replace their work identity,
• Fill their time with meaningful tasks,
• Find ways to stay relevant and connected,
• Keep mentally and physically active,
• And, finally, feel financially secure
Whether you are reading this online or in the magazine, I would underline, copy and paste this, because whenever I do a presentation or advisor training, it’s the slide most people take pictures of after I’m done.
Why? Because these factors are essential to making a successful transition from work life to home life. Take a moment to consider someone you think is a successful retiree. What makes them successful—or better yet, how are they winning at retirement? It’s a powerful question most financial professionals can’t answer but should be able to.
You’ll notice the final, financial component is at the bottom of the list. It’s not by accident but rather by design, because if we can get the inside right, the outside stuff has a much better chance of falling into place and aligning with a person’s inner values and needs. This is important as we get back to the game plan for a retirement comeback.
People have to know the formula to win, and it’s not just age and assets. The nice thing is, the formula can be valuable to those in their pre-retirement years as well as those who have just retired or been out of the workforce for a while.
A big part of making a comeback is mental preparation and perspective. One way to achieve this is through practice and inspirational content. It’s one reason I tell clients that the best way to create a successful life in retirement is to start living that life and those habits now, before they get there. We all know the age-old advice from Stephen Covey, “First we make our habits and then our habits make us.” So just as we preach the development of both saving and investing habits, we also need clients to practice being healthy, connected and engaged.
People look to financial advisors for insight, wisdom, knowledge and strategy, and do so with a lens of trust. We owe it to our clients to not only get their money right, but also their purpose, moral compass and direction right as well. A powerful way to do this is with uplifting content. Whether that means adding an extra page or section to your newsletter, writing new blogs, interviewing other experts or licensing content, there are myriad ways to add some positive spin to your clients’ lives.
Right now, more then ever, financial professionals need to devote some time and training to the development of a game plan for retirement underdogs. Whether it’s for new prospects or existing clients, it’s time we take down the colossal view of the traditional retirement plan and not only instill hope for them, but give them a road map to success.
Robert Laura is a best-selling author, nationally syndicated columnist and president of Wealth & Wellness Group. He is a seasoned conference speaker, corporate trainer and pioneer in “The New Era Of Retirement,” which focuses on the non-financial aspects of life after work. He can be reached at [email protected]