This is the point I mentioned earlier about being able to discuss the risk and return characteristics of the vaccine. There is no doubt that I could sit here and rattle off things like Covid, breakthrough cases, vaccine side effects, case reporting, natural antibodies and death statistics to make a case for the vaccine one way or another. While all of this data is important, it can also be controversial and emotionally charged. So instead of going down this path, advisors can take a different approach to vaccine risks and returns that focuses more on the mental, social and physical aspects of such a decision.
I think it can also help to preface discussions like this with the idea that many people face sudden or forced retirement well before the pandemic. Whether they are dealing with a company closing, a health condition, a company buyout or a caregiving situation that calls them away, a lot of people end up in retirement before they expected and have to learn how to adapt to their new life after work.
No matter how a client ends up in an unexpected retirement, the fact is their mental, social and physical life will change. As I mentioned before, there will be much less social interaction with co-workers, especially if there is any amount of friction involved. Clients usually don’t understand how work served as an important social outlet for them until that work was gone. Of course, once it's gone, it's hard to get back and replace, especially if lockdowns or social gatherings are limited again because of the Delta variant or something else. In other words, clients risk social isolation without work-related engagements, either in person or online.
I am not trying to persuade people to get vaccinated just to avoid retirement. Instead, I follow a basic behavioral economics principle that suggests people make better decisions when they have relevant information, access to immediate feedback and the ability to practice it.
Unfortunately, it’s hard to be retired in general, let alone in the current state of the world. But again, this is where the advisor can come in and share the way other clients have adapted to retirement during Covid or talk about the ways other people facing sudden retirement have responded, going over what worked and what didn’t. The ultimate goal is for every client to have a written, non-financial plan that helps them replace their work identity, stay relevant and connected, keep mentally and physically active, and express their spiritual beliefs—no matter whether their retirement decision is Covid- or vaccine-related.
There’s an emotional perspective to take into account here, too. People are feeling like their choices are being taken away: that they are being forced out of work against their will—either because they have to get the vaccine or because others around them aren’t getting it.
In order to help shift the focus in these cases, I ask clients, “While you were working and dreaming about retirement, what were some of the things you hoped to do?” This is a simple mind shift from a client’s current situation to a future one that can help reframe their feelings and focus. As you might expect, some clients will say they want to travel, but now they can’t, which is why advisors should be prepared to discuss local travel ideas or even virtual tours. Taking it one step further, encouraging a client to do something like learn a new language in anticipation for future travel to a foreign country can be another helpful way for clients to shift their focus.
People’s physical activity is also going to change in retirement. They used to have to get up, get dressed, drive to work, walk into a building and stroll to a lunch or meeting room in any given day. They may not be as physically active now that they’re working from home. And they are certainly not going to suddenly become more active just because they retired.
You may be familiar with the “Covid 10” (or 20) where people gained weight during the pandemic. For me, it’s not so much that I am sedentary for a large part of my workday, but more that the refrigerator and pantry are mere steps away. Furthermore, when you’re working in shorts, jogging pants or yoga attire, you aren’t paying as much attention to your nutritional habits as you would be putting on work clothes every day.
It’s crucial for clients making retirement decisions that they have all of the pertinent information about their transition. A non-financial plan helps them replace the things they will lose from work, though it may or may not persuade them to get vaccinated. In any case, it will help them make a better transition instead of trying to figure it out on their own for the first couple of years.
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 founder of The Certified Professional Retirement Coach Designation, which focuses on the non-financial aspects of life after work. He can be reached at [email protected].