Remember Y2K? When the year 2000 was approaching and computer experts realized that most software was written with the last two digits representing the year as opposed to all four digits, making 2000 indistinguishable from 1900? 

They feared computers would behave as if the year had changed from 1999 to 1900, and there was no way to predict the possible consequences. This left some doomsayers warning that it could mean the end of civilization as we know it, while other experts expressed more targeted concerns with the power grid, running water, traffic lights, airports and banking systems.

As a result, computer programmers were tasked with feverishly updating software and the general public was left scurrying to do everything from buying extra food, water and supplies to building personal bunkers and basement safe havens. 

The event created what is referred to as collective anxiety: A situation where a large group of people grow in size and concern as the circumstances they fear rapidly approaches.

I don’t know about you, but I didn’t buy into the whole “End of the world” thing. I just didn’t care and assumed everything would be okay. I didn’t buy any extra food, water, batteries or candles. I figured it was a giant waste of time and money… and if there was a problem, it could easily be resolved. As it turned out, that thought process and decision ended up costing me much more than I would like to admit and unfortunately, something eerily similar is happening to more and more people as they approach retirement. 

You see, the gravity of the situation didn’t hit me until it was directly upon us. It wasn’t until 11 o’clock on New Year’s Eve that I realized I was the only one without a plan for what was about to happen. Staring down the gun barrel of not being able to shower, drink clean water and see in the darkness, I left the party I was at and quickly filled up my bath tub with water and ran to the local gas station (only place open) to purchase some water, a flashlight, batteries and some extremely unhealthy food choices which cost a fortune. 

My last minute planning caused stress and had me running in circles instead of enjoying my time and the event I was at. The very same thing is happening to people as they reach retirement. They see it coming but it’s not until they actually get there that they flip-out. They are finally coming face-to-face with the idea of no longer having a work identity, a paycheck, an automatic connection to others or sense of accountability… and it’s got clients stressed and running in multiple directions. 

For years retirement has been this distant thing that will eventually happen, and they’ve been told that everything will be okay if they have the right amount of money and asset allocation. Then they start hearing the horror stories about spending every waking moment with their spouse, being stuck watching the grand kids five days a week, gaining weight, feeling depressed, drinking or smoking more, losing touch with friends, or having medical complications. Their minds wander and the joy they hoped to experience in retirement is replaced by fear and worry, leaving them paralyzed or running to the closest place open for a quick fix.

What’s so interesting about the collective anxiety surrounding retirement is how people express it. I see it on a regular basis when I teach my non-financial retirement planning workshop, Naked Retirement. I start by asking people why they signed up for the class and time and time again, people respond with comments infused with anxiety, worry and even frustration.

I recently had a woman share, “I’m afraid of what I will become. My whole life I only wanted to be a teacher and I’ve been one now for over 30 years and I’m afraid to give that up.”

Another gentleman shared, “I may be 60, but I feel like I’m 40 and my doctor says I’m in better shape than guys half my age. I’m not ready to retire from life… I know I can work circles around younger people and am just not sure what’s next but its something.”

I bring up these comments because like so many others, they are so heartfelt.  I can see the pain in their eyes, the tension in their jaws and the despair in their voices as they struggle with the question of “What’s next?” 

As a result, I have come to the unfortunate conclusion that one of the biggest challenges we face as advisors is helping people figure out who they really are so that they can experience retirement in a genuine and authentic way.

On the surface, that may sound like a noble cause but frankly it’s very troubling because many clients are lost and afraid of who they really are. In the land of the free, many people are trapped by their thoughts and feelings… overwhelmed by their options and choices… and more importantly, looking for someone or some way to help them create a balanced retirement plan that helps them resolve these conflicts.

So here are a few ways advisors can help clients avoid a Y2K effect on their retirement.

Help Them See Outside The Box

One of the biggest issues with clients trying to re-imagine or re-invent themselves has to do with semantics. The term retirement contains the prefix “re” which literally means to do something “again” or “again and again.” It indicates repetition, withdrawal or a backward motion. That’s not what people want or need to do! 

They need to be encouraged to think outside the box. This can be accomplished in a number of ways. From an engaging question such as “What’s one thing no one would believe you started doing in retirement?” to sharing an inspirational article or empowering video.  (Here’s a sample of the newsletter I send out.)

Stop Being And Start Doing

One of the most common problems I see with clients moving toward retirement is that they are living below their potential. That’s not to say, people should be doing these mind-blowing overachieving things, but rather doing instead of being.

Time and time again, I hear people say they want to be healthier, become an author and be in business for themselves. Advisors are often well connected to their community so become a resource for clients that gets them doing instead of just being. Have a list of exercise or yoga classes, writing workshops and get to know the local S.C.O.R.E. volunteer to answer their business questions. Don’t let them assume everything will be okay, get them moving and taking action instead of thinking or just being. 

Be A Part Of The Sharing Economy

The key for advisors to understand is that the process for helping clients avoid a Y2K effect on their retirement can’t be a one and done type thing. Financial professionals need to develop a consistent and reliable communication pattern that meets the needs of various types of clients. Financial content combined with personal stories, trivia questions, or brainteasers can meet the needs and interests of different clients.

I realize some of this may not feel like it’s an advisor’s responsibility, but let me assure you, helping a client catch even a small glimpse of who they really are or can be pays better dividends than any portfolio you can build.

Overall, retirement, like Y2K, can be a scary time filled with unknowns that can cause stress and worry. Whether it’s having extra food, water and batteries on hand or helping a client figure out who they really are when they are no longer working, it’s essential for advisors to help clients avoid getting caught up in the collective anxiety of a problem. That means giving them specific strategies to step outside the box of traditional retirement, focusing them on doing instead of just being, and providing consistent communication to support their transition efforts. 

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].