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Finding Your Retirement Rhythm

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by Denis Wuestman

Retirement transitions take some time. What comes to mind when you hear the word rhythm as it applies to aspects of your life or job?   Baseball pitchers would likely express a feeling of command and control of their pitches. Basketball players may look at this as their shooting consistency and accuracy. When they are getting good results, they are in a “groove”, focused and directing their energy in a positive way. Most likely, they are enjoying the moment. Liken this to your personal work or life experiences. Can you remember a time when you were in a good rhythm or recognized it for the first time?

Getting My Attention

I recall one of my first jobs out of college, where I worked in a clerical position. I observed that, come 4:45PM, everyone methodically cleaned their desk and sat staring at the clock for it to hit 5:00PM – at which time they literally bolted for the door. The longest 15 minutes of the day! Ok- we all do what we have to do sometimes, but this was not for me. I left after just 9 months for something much more fulfilling. Reflecting on this years later, I realized that I was looking for my work life to have a rhythm. I defined that as doing something for a purpose so I would not be bored or drift (yes the pay served a purpose but that didn’t mean I wouldn’t get bored or drift).   Like I said – we all do what we have to do at times, but at that particular time, I knew something had to change and I was in control.

What Does this Feel Like?

What should being in a rhythm feel like? I suggest that it’s enjoying something so much that the energy you expend flows in a natural way with a very fulfilling result. Think about the pitcher who has found the areas of the strike zone that the batter has trouble with, or the basketball player who is knocking down 3 pointers. Think about times when you are enjoying yourself – how do you feel inside? When you are in a rhythm, you are on “automatic” and not noticing how time is passing by. You likely feel at peace with yourself and with what you are doing.

A few months ago I met Larry, a 52 year-old tour director, who in his early work years had jobs where he literally couldn’t wait for the day to end. He was bored, found himself drifting and easily noticed the slow ticking of the clock as the work-day wore on.   At the age of 30, he decided to make a change and sought the type of work that he was passionate about. He liked being outdoors, talking to people and most of all learning about and experiencing the beauty of the world. He decided that he wanted to help others experience the same feelings. Today, some 20 years later, he is conducting tours in various parts of the world where he exerts a high level of energy but is not bored or drifting. Larry only looks at the clock nowadays because he has to keep his tour on a schedule. Otherwise, he hardly notices how the day passes by….he had found his rhythm.

Recognizing Lack of “Rhythm”

Retirement life is a time when we can easily lose our rhythm.   Ok- so we don’t have to go to work anymore, but what happens when we start really noticing the clock everyday? Doing things we don’t like to do? Watching too much TV? Sleeping too much? Not having a purpose anymore? In past blogs, I wrote about the importance of having a vision and purpose for your retirement complete with meaningful activities.   This gives our retirement life structure and helps us master time.  Without these things we risk drifting, becoming bored and ultimately looking at the clock- or worse yet, doing things just to make time go by. Time is then controlling us vs the other way around.   When time controls us – it can make us anxious. When we master time and spend it in a fulfilling way, we will likely still notice it – but it can make us more appreciative.

Why do people lose their retirement rhythm? Perhaps at this time of their lives, they are now more responsible for their own time, than they were at any other point in their lives.  This is actually a great blessing as they are also freer to choose to do what they want to do. It is a great opportunity for retirees to create their own rhythm. Like the baseball player – define your strike zone. Like the basketball player – focus on your shot. And, like Larry, define what gives your day purpose so you never have to hope for it to end….

How have you defined what retirement rhythm means to you?

Listen to our retirement podcast with interviews with authors, experts, and retirees creating interesting lives in retirement.

Are Distortions Standing Between You and an Awesome Retirement?

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By Joe Casey

Across the street from my office is an excellent ice cream shop (that I avoid like the plague). It has an old-fashioned funhouse mirror that distorts your image as soon as you walk in. Beliefs about retirement can have that same effect. By retirement, we’re not talking about the gold watch at age 65 followed by days filled with golf, CNBC and walks on the beach. We’re talking about retirement today  – the time when you’ve achieved enough financial independence to leave ‘the grind’ behind and transition from your primary career to your next chapters.

While it’s clear that a traditional retirement today is virtually obsolete, governmental and organizational policies have not evolved. Except for the shift away from pensions and being on our own to sort out the financial side, when it comes to retirement, ‘the system’ hasn’t caught up yet. And, sometimes, we’re not fully aware of how some of our beliefs about retirement are also rooted in the old model of retirement.  It’s time to examine those beliefs and update our thinking to align with the new retirement realities.

Retirement is All About Leisure

When planning for retirement, our first thoughts are often about the anticipated joys of not working. I’ll lose the commute, that demanding boss, and especially some of those annoying co-workers. Every day will be a Saturday! An open calendar. Freedom. My life will be a financial services commercial come to life. Sailing, tennis, golf! (Don’t worry about never having done any of those things, I’ll have more than enough time to learn).  Okay, then – Sailing lessons, golf lessons and tennis lessons. Lots of lessons.

Retirement is Just About Financial Security

The constant drumbeat of advertising and articles remind us that we need to have a sound financial plan and enough resources for a retirement that may be as long or longer than our primary careers. It’s critical – and it takes planning, discipline and years of trade-offs and sacrifice. It demands our focus. Once we’ve achieved a degree of financial independence, we’re set.

Retirement is About Staying Busy

“Keep yourself busy” is often the advice. No one wants to be idle or lonely in their later years.

(Have you seen my calendar? Now I have those darn lessons almost every day!).

Retirement is One Phase

Once you’ve thought about what you want to do, you’re set. Planning for life in retirement is a ‘one decision’ type of thing. After all, how hard can it be? I’ll have all the time to do what I’ve always wanted to do.

I Control the Timing

Many people focus on the timing issue. It’s a cornerstone on the old model of retirement. When can I retire? When do I want to retire? What’s my date?

A Different Story

People who report that they are enjoying satisfying retirements tell a different story. According to several surveys in recent years, they’ve found that:

  1. A Satisfying Retirement Includes Work of Some Kind – and Fun 

 It’s hard to imagine, but nothing but fun can be a little boring. The most highly satisfied retirees use the principle of diversification, not only in their investments but in how they choose to allocate their time in retirement. While every retirement is different, the most satisfied ones describe a balance of interests and activities, often including some type of work. For some, its part-time work. For others, it’s unpaid work. Some people continue doing what they’ve always done, but in a different way, such as consulting. Others use it as an opportunity to change lanes and try something new and different.

  1. It’s About Much More Than Money – It’s About Purpose

What the financial services commercials fail to emphasize is that it’s your time that’s your most precious asset, not your money. You can find ways to make money, but you can’t really create more time.

During our careers, our purpose is pretty clear. Once we transition from that world, one of the biggest opportunities and challenges is redefining what our purpose is. That takes time, reflection and, usually, some experimentation to discover. Retirees who report the most satisfying retirements report a renewed sense of purpose.  In the new retirement that, in turn, drives how they choose to invest their time.

    3.  An Awesome Retirement Prioritizes Meaningful Things

 There’s a difference between being busy and being busy with things that matter most to you.

Many people skip the reflection and planning that helps them discover a new purpose and end up drifting, by default, into retirement.  As a result, it’s easy for their time to get vacuumed up by other people’s priorities. In contrast, satisfied retirees are winning the battle of priorities and investing their time on the most meaningful things. And these tend to not be selfish pursuits, they often involve having a meaningful impact on others.

  1. Retirement Today Has Several Phases – Not One

 When the concept of retirement was Otto von Bismarck in Germany in 1881 it was meant to be a short period of leisure when people were perceived to be less able to continue to work – physically and mentally.

With longer lifespans, the concept of retirement changes dramatically.  Retirement today can consist of three distinct phases rather than one period. The first phase, often beginning in one’s 50s or 60s, is an active period, it often involves work in some way, perhaps an encore career, or perhaps travel.

The second phase, often beginning in one’s 70s or 80s is a period of slowing down somewhat. Still active, it may still involve work and/or travel, but at a different pace. Finally, the third phase, often in one’s 80s or 90s, is more limited. Each phase needs to be factored into our retirement planning.

  1. Focus on What You Can Control 

 In the old model of retirement, much of the process was prescribed. Today, we’re on our own. People are retiring at different ages and stages. Investing in planning your life in retirement can help a great deal. And the fact is that many of us will not be fully in control of the timing. According to multiple surveys, over 60% transition to retirement years earlier than planned, due to major life events such as the loss of their job, health issues or the need to be a caregiver. Taking some time to plan and design your life in retirement is a wise move, including if the timing is earlier than anticipated.

Take Stock of Where You’re At

The old model of retirement is mainly gone. We’re on our own – and we need to chart our own course. We use an in-depth assessment tool that helps our clients get clarity on where they are ready for the transition and pinpoint the specific areas that need attention as they begin and pursue their journey.  This helps avoid the tendency to drift and hit your stride earlier in your next chapter.

After all, isn’t that why you’ve been working so hard to achieve financial independence?

Joe Casey is a retirement coach in Princeton, NJ. He writes for The RW Blog and is the co-host of a retirement podcast at retirmentwisdom.com.

References

(2017). Transamerica. 17th Annual Transamerica Retirement Survey.

 

(2016). TIAA. The 2016 Voices of Experience Survey.

 

(2014). Merrill Lynch/Age Wave.  Work in Retirement: Myths and Motivations.

 

How A Bridge Job Can Be Your Phased Retirement

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By Joe Casey

If you’re of a certain age, your thoughts may be turning to retirement. Not tomorrow, mind you, but you can envision a time when you’d like to be doing something else. Lately, you find yourself musing ‘I’m too young to fully retire, but I’ve had just about enough of the grind.’  You’re not ready to ‘hang ‘em up’ yet, but maybe it’s time to scale back on work and enjoy life more. Maybe it’s time to slow down a little, without completely stepping off the carousel (just yet).

 

Having Too Much Fun?

You like the work itself. It’s the politics, the commute and such that you could use less of. When you run the numbers, you see that you can retire, but you’d like to keep your hand in the game. You’d just like to find a way to scale back between now and when you’re eligible for Medicare coverage, for example.

 

Phased Retirement

Working out a way to retire gradually rather than abruptly makes good sense – for both employees and employers. However, it hasn’t caught on widely beyond a number of progressive companies and the Federal government, which launched a program in 2015. Less than 10% of companies surveyed offer phased retirement. There are a number of legal hurdles and complex benefits plan design issues that prevent many organizations from offering formal phased retirement programs.

 

Negotiated Flexible Work Arrangements for Seasoned Employees

While formal programs are not plentiful, the good news is that managers and organizations are often more open to negotiating individual arrangements. Depending upon your goals and your organization’s policies and benefits plans, you may be able to shift to reduced hours, a part-time status or to elect retirement and be engaged as a consultant. (You’ll want to do your homework carefully in advance – consulting internally with your HR group and externally with a knowledgeable financial professional and/or lawyer to understand the possibilities and potential consequences). Often organizations have established flexible work arrangements in place that could be leveraged in a way to design a gradual retirement plan.

 

Bridge Jobs

If your current boss or your organization isn’t open to such an arrangement, explore ways to build a bridge job with another organization or even a portfolio of multiple organizations. In fact, in today’s economy, it is increasingly common for people to engage in a bridge job before they completely exit the labor force, especially women.

The nature of retirement is dramatically changing, but so is the nature of work. The good news is that the demand for project-based work is strong. The leaner staffs in place at many companies today leave them with a shortage of the capacity, skills and experience they need. And they’re filling that gap with alternative work arrangements. In fact, a recent study found that most of the net job growth since the financial crisis has been in this category, and the strongest growth was among older, experienced workers.

 

Stay in Tip-Top Work Shape

An article in the Chicago Tribune this week cited a Gallup poll noting that nearly three-quarters of baby boomers expect to work in retirement. The competition will be fierce, so you’ll want to have an edge in the marketplace. The best approach to building your own phased retirement through bridge jobs is to prepare and plan ahead.

Lay a strong foundation by taking action:

 

  1. Keep Your Skills Sharp and Relevant

Look at the period before you retire (ideally 3 to 5 years) as a time to reinvest in your learning and development. Look for          ways to stay current in your field and add to your knowledge and skills.

 

  1. Cultivate a Strong Internal and External Professional Network

Sometimes people nearing retirement scale back on networking. It’s actually an important factor in landing work in the              evolving gig economy. Tend to your contacts and look for opportunities to develop new ones.

 

  1. Do Your Homework

Talk with people you know who are working in retirement to solicit their advice. You may be surprised by what you learn.           Many people are willing to share their experiences and advice but are rarely asked.

 

  1. Research Your Options

It’s a whole new world out there! Talk with your contacts about what you’d like to ultimately do and learn more about how your experience can be leveraged in different ways.

 

  1. Engage Your Organization

           Once you’ve completed your homework and you have a sense of what you’d like to do regarding a possible bridge job and the timing, have some exploratory conversations with the right people in your organization. Sound out your boss and see what may be possible.

 

The reality is that most organizations aren’t prepared for formal phased retirement programs. Yet, many are open to informal arrangements with valuable employees who want to transition to retirement gradually. And, if your company is not, many other organizations are eager to tap into the skills and experience of seasoned workers in alternative work arrangements, like consulting, that can allow you to create a bridge job. It takes some homework and planning, but taking charge and being proactive may just lead you to the bridge you want.

 

Joe Casey is a former senior HR executive who’s become a retirement coach in his second career. He writes for The RW Blog and is the co-host a retirement lifestyle podcast.

References

Cahill, K.E., Giandrea, M.D. & Quinn, J.F. (2015). Retirement patterns and the macro-economy: The prevalence and determinants of bridge jobs, phased retirement, and reentry among three recent cohorts of older Americans. The Gerontologist, 55(3),384-403.

Johnson, R.W. 2011. Phased retirement and workplace flexibility for older adults: Opportunities and challenges. The ANNALS of the American Academy of Political and Social Science, 638-68.

Marks-Jarvis, G. (2017, June 1). Baby boomers, planning to work past retirement? Here’s why that idea may be a bust. Chicago Tribune. Retrieved from www.chicagotribune.com

Is Retirement Another Chance to Change Your Major?

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By Joe Casey

With graduation season in full swing, you may be wondering What do college and retirement have in common? Okay, probably not.  But there are some interesting parallels that may change how you view retirement.

Big Transitions

College and retirement are among the most significant life transitions many people will ever navigate. Both involve dealing with uncertainty, exploring options and making decisions that chart a course forward.

Undecided is the Default Setting

Estimates are that up to 50 percent of students entering college are undecided about their major course of study. For many, the first year or two of college is a period of exploration and discovery, before committing to a specific major.

The early phase of retirement is also a period of exploration for many retirees. A study by Merrill Lynch (full disclosure: my former employer) and Age Wave found that on average, retirees took 2.5 years before deciding how they wanted to re-engage and invest their newly found time. Their 2016 study on trends in leisure among retirees, found that the first years of retirement is a period of “liberation and self-discovery” with a high level of interest in trying and learning new things.  At the same time, it’s also a period of adjusting to the new freedom and challenges that life in retirement brings, such as discovering a new purpose and figuring out structuring time.

Forks in the Road

It’s estimated that up to 75% of college students change their major at least once before graduation. During the first year or two they discover what they really want to do and make a shift. In some cases, it’s making a shift away from what others, often parents or peers, they may have thought they should do.

Retirement can be similar. There are expectations that people carry into their transition – what they think they are supposed to do once they retire. However, one of the benefits of growing older is that mature people are found to care less about what others think – and that provides another level of freedom. Many people are living their lives in retirement, pursuing what they really want to, given their newly found time.

Steve is a good example of someone who is using the second chance retirement offers to pursue something he always really wanted to do. A former college soccer goalie, had a long career as an engineer. But he never lost his love of the sport or his desire to coach it. He coached his three children throughout their playing career and kept coaching at advanced levels long after they played. At 62, he works part-time as a high school soccer coach, which he thoroughly enjoys.

For Ann, it was a newly developed interest that lead to an encore career. A financial analyst, with six children, she took up yoga in her early fifties, as her kids advanced in school. She later became a certified yoga instructor and today owns and runs a thriving yoga studio here in town with a team of instructors and a multitude of classes that are very popular, and often hard to get into.

Longevity Can Create Multiple Retirements

The trends are clear that people are generally living longer. Consequently, many people will have not one retirement period of life, but several phases. Most people are working longer. For some, sticking with what they’ve always done will work fine. For others, it may be an opportune time to return to an earlier passion – or develop an entirely new interest and run with it.

Listen to our retirement podcast with interviews with authors, experts and retirees creating interesting lives in retirement.

References

(2014). Work in Retirement: Myths and Motivations. Merrill Lynch/Age Wave.

You’re Not Retired – You’re on Vacation!

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by Denis Wuestman

Last week I had lunch with a good friend of mine who is between jobs. We talked about his job search and time off and he expressed how much he was enjoying this period of time. He got my attention, when he said that he “could easily get used to being retired”. I couldn’t help but laugh as I said to him: “that’s because you are not retired – you are on a long vacation – don’t confuse the two”.

We bantered back and forth on this for a while as he insisted that he could easily get accustomed to “doing nothing all day”. In fact, he remarked how time flies when you get up late, run errands and relax. I noted that he was very active at two things that he wouldn’t be doing when he actually IS retired. This was almost too easy for him to miss, as this brief period of time off from work was filled with both purpose and focus. First, he had children living at home who needed help at times with various things – he was still very much involved in their lives. Secondly, and the most obvious, was that he was focused on getting another job. While he was not job-hunting 24×7, he was investing the appropriate time in his search. This is not the typical experience one has when they do “retire”.

Imagine if….

I asked my friend to imagine, if he could, what it might feel like to not be looking for work OR having the kids dependent on him. How would he spend his time?

Imagine you no longer had a mission or focus but rather you were free to drift. Sounds good for a while but would you get bored? When you are on a “vacation” it should feel like one – a break from the buzz of work life – when you can rejuvenate, reflect and gain some balance in your life. But, that vacation time will end at some point. When you are retired – this is your life – not a vacation from working. So, how does one take steps to ensure retirement life is as fulfilling as those real vacations? In retirement life, it’s important to be “moving towards” something complete with purpose and meaningful activities that you will enjoy. This way, when you have moments of “doing nothing” you will feel more comfortable and satisfied knowing that you also have other activities that will create balance and fulfillment.

Lessons from Lunch

Here are two key lessons I got that day in thinking about a transition to retirement.

1) Recognize what you are leaving behind from your work life and examine if you will need to replace any of it. In my friend’s case, the socialization, identity, status, structure and a paycheck were important to him and would likely continue with the next job. When you retire – you may miss some of these. Something to think about.

2) Having a purpose and meaningful activities in your retirement life can help make your “doing nothing” time more enjoyable – as you will have achieved a good balance for yourself. The same way vacation helped balance you in your working years, fulfilling activities can balance you when you retire.

Upon reflection, my friend admitted that he hadn’t considered how he would replace his job search and his children’s activities – it was not easy to imagine. Fortunately, he was years away from this but nevertheless, the message stuck.

Time is your biggest asset in retirement – managing it is a challenge. Without a purpose and focus, it can turn into a lot of “doing nothing”. That’s fine when you are on vacation but remember, vacations end, retirement goes on for a lot longer!