Have you listened to our Podcast yet? Start listening today to maximize your retirement years! CLICK HERE

CLICK HERE to hear our podcast!

Retirement Wisdom

Retire Smarter

retirement blogs

Are You Heading for a Busy Retirement?

· ·

by Joe Casey

Finding balance is challenging in your working life. When you transition to retirement, how you structure your days in retirement can be a key factor in how satisfied you are.

Remember when you were a kid? A frequent question from adults was “What do you want to be when you grow up?”

Do you remember your answers? A favorite of mine was “An astronaut”. (My wife tells me being a space cadet is close enough). Odds are that your answer was not “I want to be really busy when I grow up.” Yet many of us have managed to accomplish just that.

Busyness Takes Over

It’s easy to get caught up in being busy. Busy is rewarded. If you’re good at getting things done, you’ll get promoted (and get even more to do). Beyond the workplace, there’s also a certain status to being busy. An article in the Financial Times this week noted that “People used to boast about leisure — now they boast about being busy.”

Retirement Offers a Chance for a Re-set

Going from the busyness of the workplace to retirement comes with the gift of freedom. But it’s a transition that has to be managed well. Planning and experimenting on how to structure your day in retirement takes some time but can make a big difference. Many people are surprised by how quickly their time becomes filled with a mix of activities – and new commitments. There’s value in cultivating an active retirement, but there’s a difference between one that’s busy and one that’s meaningful. It turns out that too much of a good thing can be a problem. Activity, if it’s not done thoughtfully, can be one of those things. Being busy can keep us from confronting big questions we’d rather not address, such as what is my identity now since I’ve left the world of work?

There’s a Better Way

Two of our podcast guests come at this issue from different perspectives – but offer similar recommendations.

Yvonne Tally is the author of Breaking Up with Busy. I came across Yvonne reading an interview she did with The Street.com’s Retirement Daily. While her book is focused on the issues working women face, in my view, many of her principles apply to men as well. She highlights the double-edged sword of technology in our lives today. It helps us to be more efficient, but it can be a constant distraction. And there are reports that it’s changing our brains – and not for the better. A recent New York Times article noted how parents working in Silicon Valley are limiting their kids access to devices and screen time because of the growing awareness of the downsides.

I first encountered Dr. David Ekerdt in an article he penned for The Wall Street Journal  In Defense of the Not-So-Busy Retirement. Ekerdt advocates being aware of how we are influenced by cultural and marketing messages about retirement and busyness. His counsel is to be mindful of what type of retirement we want to have. He points out the benefits of slowing down and recommends “letting retirement be retirement.” But he emphasizes that it’s a matter of choice. If pursuing a purposeful retirement is more appealing to you, that’s great, but he advises pursuing “purpose at your own pace.”

A key takeaway from their writing and our conversations is that there is wisdom is going against the crowd. It’s one of the things I admire about the FIRE movement. Don’t get caught up in what everyone else is doing. Step back and think about what’s most important to you and pursue life on your own terms.

How to Retire and Keep Your Freedom – Five Steps You Can Take 

  1. Be Intentional About Your Pace – What’s the ideal pace of your life in retirement? Are you ready to slow down – or are you most fulfilled with an active life? Be willing to experiment to find what’s right for y0u.
  2. Audit How You’re Spending Your Time – It’s always helpful to have some data. Pick a representative two to four week period and track how you’re actually spending your time. Use this period to document how to structure your day in retirement and record what’s working well. The results are usually eye-opening and give you clues on changes you may want to make. Pay particular attention to the time spent on TV and Social Media. Might it be beneficial to shift some of that time to other activities – reading, exercise, learning or social events? (Ok, after you finish Season 6 of House of Cards). 
  3. Declutter – Not Just Your Space but What Clutters Up Your Time – Closets and calendars can become filled with things we no longer need. What’s taking up your time that no longer fits with your priorities?
  4. Invest in Mindfulness Practices – Learning to work into our day simple mindfulness practices can help us step back, become more centered and more intentional about our choices. They don’t need to be elaborate or require tons of time. Try meditation and gratitude practices and start small. Breaking Up with Busy has practical suggestions.
  5. Fortify Your Skill Set – A key skill in keeping yourself balanced and at the pace you prefer is learning the art of saying No. Yvonne Tally’s book has excellent recommendations on how to say No effectively and protect your time for what’s most important to you.

In my corporate HR career, I was stunned once in meeting a new internal client I was to cover. He was a senior executive responsible for six subsidiary companies – he had a lot of responsibility. Right away he explained that he made a point not to be busy. Unlike his peers, he strictly limited the number of meetings on his calendar to free him up to concentrate on strategy and leadership, his highest value activities. I always thought he was rare in that regard and it gave him a different pace and a clear edge. In retirement, we can do the same. We can create the space for our most meaningful activities by learning to say No to busyness.

You can listen to our conversation with Yvonne Tally here.

You can listen to our interview with David Ekerdt here.

Joe Casey is an executive coach and retirement coach, who helps people prepare for the non-financial side of retirement, at retirementwisdom.com

 

 

Does Money Buy Happiness in Retirement?

· ·

by Joe Casey

Will  your retirement happiness be soley linked to your bank account? State Street Global Advisors recently released their 2018 Global Retirement Reality Report titled The Happiness Formula.

The survey is macro-focused and the formula consists of three factors – Trust in the Savings Systems, Ownership of Retirement Role and (financial) Preparedness. Of eight countries, the US scored highest in Ownership and Preparedness and second in Trust, far behind Sweden. The Netherlands scored the lowest in two of the three categories and the UK was in the bottom three in two of the categories. From the US perspective, it was interesting to see the gap between these two questions:

% Optimistic About Financial Situation in Retirement                 27%

 % Who Said They Are Happy in Their Retirement                          53%

It got me thinking about an age-0ld question: Does money buy happiness?

Happiness or Well-Being?

Sometimes when Happiness is used it’s as an all-encompassing term. However, the more useful concept may be well-being, of which happiness is one aspect.  Psychologists differentiate between three types of well-being. Hedonic well-being is what we tend to think of with happiness – the feeling of happiness. But there’s also Evaluative well-being, which is about life satisfaction and Eudemonic well-being, which is about purpose and meaning (1). Emily Esfahani Smith, author of The Power of Meaning writes about this and highlights the value of pursuing Eudemonic well-being over Hedonic well-being, as the latter is fleeting.

Well, It Depends 

There are a lot of studies on money and happiness. One that captured my interest is by Daniel Kahneman of Princeton University (author of Thinking Fast and Slow) and Angus Deaton. They highlighted that high incomes impacted the Evaluative well-being, but not Hedonic well-being – the emotional feeling of happiness. Writing about the concept of “hedonic adaptation“, they conclude that:

“More money does not necessarily buy more happiness, but less money is associated with emotional pain. Perhaps $75,000 is a threshold beyond which further increases in income no longer improve individuals’ ability to do what matters most to their emotional well-being, such as spending time with people they like, avoiding pain and disease, and enjoying leisure.”(3)

Be Proactive

If money is not the sole path to satisfaction, then it’s smart to take a balanced approach to retirement planning. The first step is taking charge. An interesting 2017 study of early retirees noted that people with proactive personalities reported a higher level of life satisfaction, perhaps due to a higher level of initiative. While the study focused on personality tendencies, the authors note that proactivity may be learned, and training and coaching can be beneficial in preparing for the transition to retirement. (4)

Seven Ways to Be Proactive About Your Well-Being in Retirement

Much of the focus of retirement planning is on the financial side. That’s certainly important – but it’s not the whole story. Why not be proactive about also planning for how you’ll invest your time? Laura Carstensen’s Socioemotional Selectivity Theory tells us that as people perceive that time is more limited, we become more selective about how we choose to use our time. (5)

1. Look to Your Past 

Remember those things you loved to do when you were younger? Not the ones you just liked, but the ones you really loved to do? Maybe you put them aside or gave them up entirely because you simply didn’t have time with the responsibilities of mid-life. Retirement, or semi-retirement, offers the freedom to pick one or more them up again.

2. Look at Your Present

What things that you do today give you the greatest enjoyment and satisfaction? Pick two weeks and track how you’re spending your time. You’ll probably have some surprises. It doesn’t need to be a complex analysis. Circle the things you’d like to do more off. Zero in on the things to spend less time on and free yourself up to do more of those things that give you greatest joy.

3. Look to Your Future

Do you have goals in your retirement?  I’ve heard some people say, “No. I gave those up when I stopped working.”  Well, that’s where redefining your purpose comes in. Having a vision for what you’d like your retirement life to be like in the future can be a strong motivating force.

4. Try New Things

It turns out that there’s a lot of wisdom in the old saying “Variety is the spice of life.”  Are you stuck in some repeated loops?Has the phrase “Rinse and Repeat” become your personal motto? Fielding casting calls for a role in Groundhog Day II?

Mix it up. Take a different route. Try something new for dinner. Be open to that new restaurant when you notice that your first reaction is an eye roll. Look at a course to take online or locally on something you’re curious about.

5. Take on a Challenge

Often people think of retirement as a time to finally kick back and relax. That can certainly be a key part of any retirement, but too much of a good thing can be problematic – even too much relaxation. In his new book Better with Age: The Psychology of Successful Aging, Alan Castel notes that we can also benefit as we get older by embracing new challenges. It may be mastering a sport or an activity or learning a new language. Having something in your life that stretches you can be an important ingredient. (6)

How Can You Be Better with Age? Author Alan Castel joins us on The Retirement Conversation podcast with insights you'll want to hear from his new book https://www.retirementwisdom.com/how-can-you-be-better-with-age-podcast/ Share on X

6. Stay Connected (but with the Right People)

Loneliness can be a real problem in retirement, so it’s important to cultivate social relationships beyond your workplace. But it’s wise to look at who you’re spending your time with.  Take a step back and look at your relationships. Where you have a choice, are there people you want to spend more time with or less time with? Do they bring out your best or drag you down? (Listening to complaining can be draining. Is it time to do less with Debby Downer or Negatron Nate?).

7. Be Physically Active 

And last, but not least, build the habit of exercise and activity. We know that physical activity is something we should do regularly for our health. It turns out that the benefits may be broader. It’s one of the most important factors connecting subjective well-being and health (1).

Money may not buy happiness, but it does help to create freedom. And freedom offers choices about how to wisely invest your time. So, be proactive about preparing for the non-financial side of retirement. Your retirement happiness may depend on it.

Joe Casey is an executive coach and retirement coach, who also helps people think through and create their Second Acts and life in retirement, at retirementwisdom.com.

Related Podcasts:

Why Settle for Happiness in Your Retirement?

How Can You Be Better with Age?

References

(1) Steptoe, A., Deaton, A., & Stone, A. A. (2015). Subjective well-being, health, and ageing. The Lancet, 385(9968), 640-648.

(2) Smith, E. E. (2017). The power of meaning: Crafting a life that matters. Random House.

(3) Kahneman, D., & Deaton, A. (2010). High income improves evaluation of life but not emotional well-being. Proceedings of the national academy of sciences, 107(38), 16489-16493.

(4) Maurer, T. J., & Chapman, E. F. (2017). Relationship of proactive personality with life satisfaction during late career and early retirement. Journal of Career Development, 0894845317697381.

(5) Carstensen, L. L. (1992). Social and emotional patterns in adulthood: support for socioemotional selectivity theory. Psychology and aging, 7(3), 331.

(6) Castel, A. D. (2018). Better with Age: The Psychology of Successful Aging. Oxford University Press.

Is Your Company Ready for the Aging Workforce?

· ·

by Joe Casey

There are strong crosscurrents swirling in today’s workplace that significantly impact older workers. People are living longer and many people expect to work longer than previous generations. But some people do not want to just continue to work in the same way forever. The key things they desire are flexible work policies and a pathway to winding down at their own pace. Almost half of the workers surveyed plan to transition gradually into retirement, according to a Transamerica Center for Retirement Studies report published in June.

A Big Gap

Yet, there is a sizeable gap between what aging workers want and what many companies are currently offering. Only 24% of employees in the same Transamerica survey report that their companies offer some type of flexible work options to pre-retirees. Another quarter indicates that their companies don’t offer any help to employees in transitioning to retirement. Formal phased retirement programs remain rare with less than 10% of companies offering such programs, although informal gradual retirement arrangements are more often negotiated on an individual basis.

Winds of Change?

However, there are signs that the powerful demographic shifts underway and labor market dynamics are beginning to spur a change among progressive employers. The Bureau of Labor Statistics projects workers 65 and older as the fastest growing segment of the U.S. workforce, forecasting that it will comprise a larger share of the labor force than in recent decades.

Carol Hymowitz in Bloomberg has pointed out that skill shortages in some industries are leading some companies to develop innovative approaches to retaining older employees to leverage their specialized knowledge. Others are recognizing that figuring out how to leverage a large and growing segment of the workforce is simply smart business. The Chief HR Officer of a healthcare company recently observed that “If we’re not tapping into the whole workforce, we’re handicapping ourselves”. 

Is your company ahead of the curve?

Conversation with a Change Agent

Paul Rupert, CEO of Respectful Exits, is a longtime advocate of flexible work options. Paul joined me on The Retirement Wisdom Podcast to share his observations and insights on future trends in the workplace and what his new organization is doing to provide a strong voice for aging workers. He offers savvy advice for individuals on how to approach negotiating an informal phased retirement – and guide for HR professionals whose companies want to gain an edge in retaining and attracting talented seasoned employees. You can listen to our conversation with Paul Rupert here.

Joe Casey is a former senior HR executive, who is in a second career as an executive coach and retirement coach. 

Why Are So Many People Unretiring?

· ·

By Joe Casey

After a while, the joy that comes from having the freedom to retire wears off for some people.n And a growing number and leaving retirement and returning to work. Yes, work!

Planning well for retirement takes discipline, vision, and sacrifice and often takes decades. There are critical financial issues to plan for, including health care and long-term care. Once those are reasonably squared away, there are key non-financial issues to plan for as well.

The Non-Financial Side of the Street

On the other side of the retirement equation, there are some big-picture questions, such as:

  • What will my purpose be when I’m retired?
  • Who will I be in retirement? I’ve always been a lawyer, an accountant, etc.  Now, what will my new identity be?

There are also more practical questions to consider:

  • How will I invest my time now?
  • How will I structure my day, now that I no longer have to go to work each day?

These tend to take a back seat to the more pressing financial matters. They are easy to put off, but if they remain unaddressed, they become acutely elevated in importance.

Something Missing?

After working each day for decades, the prospect of not having to go to work each day can be tantalizing. Breaking away from work delivers an intoxicating sense of freedom. But without sound planning, a secret challenge of retirement can be boredom.

Work gives us more structure, purpose, and social connectivity than we may realize when we’re immersed in it. These psychological benefits that go beyond a paycheck can create a big void if they’re not replaced. Their absence can be acutely felt.

The Phenomenon of Returning to Work

Recent research is showing a clear trend toward unretirement, with about one-quarter of retirees in the US  and UK returning to work. Half of the retirees were found to head back to work within 5 years of calling it a career.

You may be thinking that financial need must be driving people back to work. For some, that’s the case, but studies indicate that for many it’s the need for meaningful and satisfying work that is the primary factor. In fact, those who need to return to work for financial reasons have the hardest time finding work again.

New Episode of The Retirement Wisdom Podcast 

Our guest on The Retirement Wisdom Podcast, Dr. Nicole Maestas offers insights and perspective based on her research on unretirement. An economist at Harvard Medical School, she notes the benefits of working longer and what women specifically need to account for in planning for retirement.

And with people 55 and older representing the fastest growing segment of the labor force, smart companies are being to take note of how to retain and recruit talented seasoned employees. Dr. Maestas offers her advice on what companies can do to optimize their workforce in the years ahead.

Her observations will give you food for thought on how to balance your retirement planning. You can hear our conversation with Nicole Maestas on The Retirement Wisdom Podcast here.

Who Will You Be in Your Retirement?

· ·

By Joe Casey

What does your life after retirement look like when you imagine it?

 

“When you are 20, you care about what people think about you,

when you are 40 you stop caring about what people think about you,

and when you are 60, you realize nobody cared in the first place.”

– Winston Churchill

 

Have you ever asked someone “How was your weekend?” –  and regret it when, five minutes later, they’re still breaking down Saturday morning blow by blow? Let’s face it. You were really expecting “Fine” or “Wonderful” or “Awesome” – or even “Not bad. How was yours?” Any answer would do. And you’d both pleasantly move on with your days. Well, it turns out that that same dynamic may be at play with a weighty question that’s quite important in transitioning to retirement.“So, what are you going to when you retire?” Having a clear retirement vision helps guide your planning and decision-making. But while it is important to you, perhaps any answer will do for others.

What Are You Going to Do in Retirement?

When you’re faced with this question, watch where your eyes go. They will instantly tell you where you are in the process of transitioning to retirement. If they look upward, you’re probably in the exploration phase. You will likely launch into an exciting and rambling answer roaming the landscape of the possibilities you’re pondering. If the person who asked the question is still awake (or even still there…), be prepared to hear “Oh, that’s interesting.”

If your eyes go directly to your shoes, you probably haven’t taken the time to give it the proper thought yet. You may grab some answers from the shelf of classic retirement cliches and mumble something about every day being Saturday, catching up on things you’ve meant to do around the house, golf, or traveling. Be prepared for “That’s nice”. 

It’s just like the question How was your weekend?

Any concise answer will do just fine.

What’s Your Elevator Speech?

Our latest podcast guest, Dr. David Ekerdt, University of  Kansas Professor and President of The Gerontological Society of America, thinks there’s a better way.  He has studied transitions to retirement for several decades and he recommends that we develop an Elevator Speech for retirement – just as you would in starting a new business.

If you’ve ever developed an elevator speech, you’ll know that it is short and clear, by design. A lot of thought and refinement goes into it.

It forces clarity.

Who Will You Be?

Ekerdt reframes the question What Are You Going to Do Now? to a more meaningful one – Who Will You Be?

He suggests that answers to the first question can come from expectations created by cultural norms and commercial marketers. Answers to the second one require more reflection and tend to come from values. He notes that one of the cultural beliefs that shape our views on retirement is that a busy retirement is best. But a busy retirement is not for everyone. Ekerdt advises focusing on what’s most important to you. And to do those things at your own pace.

Many of our choices earlier in life are influenced by the expectations of others, perhaps more than we even realize. The retirement phase of life is about freedom. When you earn the freedom to retire, how will you structure your day in retirement? It gives you a chance to live in alignment with your true values, to do more of what you want to. Churchill suggests it’s a time we can move away from the expectations of other people.  Hear our conversation with David Ekerdt, where he shares his wisdom on retirement.