Is Retirement Right For You?

Last Updated (Wednesday, 16 July 2008)
Written by Hank Brock

The Top Questions You Need To Ask Yourself About Retirement

Working beyond retirement age might appeal to you for a number of reasons. You will have ongoing socialization, an opportunity to keep mentally and physically active, and hopefully an escape from boredom.  It may give you a reason to get up in the morning. It exposes you to a mixed age group. And, of course, it can help supplement other income sources. Plus, it may help you feel like you are contributing to society in a meaningful way.

The down side, of course, is that you will probably have less time for leisure activities, a possible reduction in Social Security benefits, and the inability to plan vacations, travel, and family time at your convenience.  Weigh the advantages and disadvantages, and then ask yourself the following questions:

• Are you ready to retire?
• Have you prepared financially?
• Not only do you have enough dollars set aside, but are those dollars invested in a portfolio that will provide an inflation hedge as well as downside risk protection?
• Do you have an estate plan?
• Have you raised your children to be financially independent? Or, are they still coming home to siphon from mom and dad?
• Are you emotionally ready?

According to Dr. Thomas H. Holmes, retirement can be a major source of stress for many people.

• Have you prepared yourself mentally and emotionally to cope with these potential stressors?
• Has your spouse likewise prepared for the mental or emotional adjustment?

Dr. Thomas H. Holmes, at the University of Washington School of Medicine, has developed a scale to measure the psychological stress that may be caused by various changes in life circumstances. Dr. Holmes indicates an accumulation of 200 or more "life-change units" in a single year may be more disruptive than individuals can withstand, and make them susceptible to depression and other illnesses.

• How is your health?

Everyone has heard stories about workaholics who would take little relaxation, and then die when they had nothing to do. That is not uncommon, because of the stress factors and the lifestyle adjustment.

I remember well a CPA client whose wife was an author.  She needed quiet time at home during the day in order to write. When he retired, his constant presence drove her nuts!

• Have you and your spouse talked things over, and made provision for the amount of time together and the amount of time away from each other?

It is important to work out a schedule that meets both of your needs.

• Are your hobbies, interests, or part time job engaging enough that you feel you have purpose?

Don't expect to live a life of boredom, monotony, and lack of purpose, and then suddenly develop a purpose upon retirement. If you are a couch potato before retirement, you are not going to develop interests overnight.

Finally, try practicing retirement with your spouse. Develop a weekly schedule, and try living it. Imagine what you would be doing day in and day out. Try living on the amount of income that you would have at retirement. Evaluate your physical activities and your diet. Get involved in those activities which you might be pursuing after retirement. Start looking for a new residence, if you plan to move when you retire.  Work on developing social contacts outside your office environment.  Then, make the retirement decision that will work best for you.

Hank Brock is President of Brock and Associates, LLC and author of "Your Complete Guide to Money Happiness." Hank is an expert at making your retirement plan a success!

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