Retirement planning isn’t just about calculating how much money you’ll need—it’s about envisioning the life you want to live. In fact, an effective retirement plan involves more than just financial calculations and number crunching. It requires you and your advisor to align your retirement goals with your personal values, lifestyle aspirations, and long-term well-being. 

Let’s explore the broader, and often less talked about, aspects of retirement planning—those things that make all the hard work of saving and strategizing worth it in the end. For those looking to create a fulfilling and purposeful retirement, it’ll require you to closely consider both the financial and non-financial factors of your life.

The Traditional Approach to Retirement Planning

When you hear the words “retirement planning” in a financial services context, the focus tends to be primarily on financial facts, figures, and calculations. Most professionals are concerned only with a couple’s savings goals, investment returns, and withdrawal rates. While ensuring you have enough money to enjoy your dream retirement is important, there are limitations to focusing solely on “Will I have enough?”

This approach is limiting, and it overlooks those important non-financial aspects of retirement that contribute to a person’s overall happiness and fulfillment.

Take a More Holistic Approach to Retirement Planning

With an average retirement age of around 61, men will spend a little under 19 years in retirement—for women, it’s nearly 21 and a half years on average.¹ 

That’s around two decades of life—not an insignificant amount of time by any means. Aside from the financial preparations, there are plenty of other considerations you and your advisor should be making as you prepare to embark on this exciting adventure. 

Namely, you should be thinking proactively about the aspects of retirement that will bring you joy and fulfillment, such as your desired:

• Lifestyle: Do you want to be jet setting around the world? Living closer to the grandkids? Starting an encore career or new hobby? 
• Health: What will you do to make sure you’re prioritizing your health as you age? Without your health, all that time preparing for a long and happy retirement can be put in jeopardy. Think about what you’ll do to stay active, remain engaged in the community, and age gracefully well.
• Relationships: Loneliness and isolation are two of the biggest threats to a person’s well-being in retirement. You can combat these by staying connected to loved ones, building a new network of support, and getting involved in the community.

In addition, you and your advisor may want to focus on aligning your retirement plans with your personal values and passions. For example, if you’d like to support your grandchildrens’ education or give generously to a local charity, you’ll need to incorporate those goals into your greater retirement plan. Your personal values can also revolve around your retirement goals and desires, like traveling more, picking up a new hobby, or spending more time with your family. 

As you work to develop a more holistic retirement plan, it may help to envision your ideal retirement—from where you’ll be living to how you’ll schedule out your days, who you’ll spend time with, and what activities you’ll pursue to bring you joy and satisfaction.

Key Non-Financial Considerations for a Holistic Retirement Plan

So what, exactly, should you focus on when developing a holistic retirement plan (apart from any financial calculations and savings goals)?

Here are some of the top priorities we help our clients consider during the planning process:

Lifestyle and Social Connections

Many people don’t realize just how much time they’ll have on their hands once retirement hits—especially for those used to decades of working a 40-hour (or more) workweek.

Financial freedom means your time is yours to do as you please. The issue is, people need a sense of purpose and regularity to feel satisfied and fulfilled. Just “winging it” once you get to retirement may lead to more frustration, stress, and feelings of isolation than necessary.

Instead, consider first where you’d like to live since this will impact what your daily life will look like. If you’re interested in moving to a new area, research your intended destination to find out what sort of daily activities you might want to partake in and how you’ll remain socially engaged in the community.

If you are moving farther away from family and friends, make a plan to stay connected with your loved ones once retirement is here. Perhaps this means monthly visits to see the grandkids, weekly phone calls, or summer vacations together.

Health and Wellness

As you age, your likelihood of experiencing illness or disease increases. Even with Medicare and Medigap supplemental policies, you may still be responsible for covering a significant amount of costs out-of-pocket (such as long-term care). With time on your side, now’s when you should focus on taking preventative measures like:

• Staying active and focusing on activities that increase your strength, stamina, and balance
• Maintaining a healthy, balanced diet
• Receiving recommended screenings and tests
• Accessing quality healthcare as needed

Legacy and Impact

Take some time as you prepare for retirement to consider the sort of legacy you’d like to leave behind. How can you continue making an impact throughout retirement? Perhaps you’d like to spend your time mentoring others, working with your favorite charity, or passing down your values and wisdom to the next generation. 

We Can Help You Develop Your Holistic Retirement Plan

As you continue building out your retirement plan, it’s important to balance your need for financial security with the desire to live a meaningful and fulfilling retirement. We can work together to help you adapt your current financial strategies to support your lifestyle goals, from traveling early in retirement to funding any long-term healthcare needs later in life.

Our team at Mission Street Wealth is here to help you define your retirement goals, align them with your values, and develop a financial plan to achieve them. If you’re ready to learn more about our process, schedule a call with our team today.

^{Sources1 The average retirement age in the US}