Holistic Retirement Planning

The need for a holistic retirement plan, one that addresses both your non-financial needs as well as your monetary ones, is critical to a successful retirement transition.

Why
Retirement is one of life's most difficult transitions, comparable in impact to divorce or death of a spouse.  According to an American Demographics poll, 41% of retirees report that retirement was a difficult adjustment.  This contrasts to only 12% of newlyweds who felt that marriage was a difficult adjustment and 23% of new parents felt that the having their first child was a difficult adjustment.

People find that that the grass is not necessarily greener.  Surprised, they discover that instead of a burden, work was the very thing that gave their lives structure, purpose and fulfillment.  Many boomers spend years planning financially for retirement. They cannot foresee that even as they pursue the very things they thought would bring pleasure, they may in fact, feel rudderless, stressed and confused about how to spend the next quarter of their lives.

To make a successful transition, people need to gain an understanding of what will give them a sense of fulfillment, satisfaction, and happiness and to embark on activities that support these needs. 

Planning is so important that those who plan effectively (both personally and financially) report feeling confident, fulfilled and balanced.  Those with money, but no plan for their retirement lifestyle, find that retirement is simply not as enjoyable as they expected.  The best way to transition to a life full of meaning is to plan for it.

Here’s the key to success:  Your financial retirement plan should support your personal retirement plan, making your new life both possible and meaningful. 

When to start a holistic retirement plan
The ideal time to start working on the non-financial, the psychological aspects of retirement, will vary from person to person.  In a piece entitled “Managing Oneself”, famed author Peter Drucker notes, “There is one prerequisite to managing the second half of your life:  You must begin doing so long before you enter it.”  You can consider starting up to 5 years before you plan to retire.  This will give you time to create a general plan, refer to it, take early actions, and alter it as circumstances change and your retirement date approaches.  Most people, however, will find the most effective time to engage actively in non-financial retirement planning is one to two years before they retire. This gives enough time to develop a detailed plan, test the feasibility of the planned activities, make adjustments and be prepared for the transition ahead. 

What are the components of a successful retirement plan?
A successful retirement has 3 components:

-Physical activity which means getting regular exercise.

-Mental challenge which consists of difficult, engaging pursuits that call for focusing the mind, concentrating, learning new things, solving problems, and thinking with agility.

-Social connection which involves active ties with friends, family, and community. The most important social ties involve friends who voluntarily choose to maintain relationships with you.

To build the best foundation of success in retirement, your activities need to match your personality.  For a more detailed discussion of the components of a successful retirement see my article “Foundation of Successful Retirement: 3 Keys to Healthy Aging”. 

Trying to figure out how much money you need is impossible until you know what you will be doing.  It is putting the cart before the horse.  If you fall into the trap of planning only your finances, you may unintentionally narrow your options and you will never have the security of knowing that your financial position matches you life plan. 

First things first, and knowing what you want to do with your next phase is the best foundation for a financial plan.

How to develop your plan:

Getting through the retirement transition requires creating a plan to get you to your next phase.  After many years of research, personal experience and time helping others we, at My Next Phase, developed a patent pending process that can guide you in developing your plan.

Here’s a brief overview of the patent-pending My Next Phase process:

Step 1 - Understanding Yourself
Personality test and feedback for review. These will offer you new insights into your own personality and how you handle change. This is where you identify your personal strengths and vulnerabilities for the transition ahead.

Step 2 - Balancing Your Life
Surveys to examine the changes you face in your working and non-working life. Here, you will gain an understanding of just how disruptive your retirement transition will be. You will gain a deeper understanding of the areas which have brought you fulfillment thus far – and be better prepared to plan for a more satisfying life after retirement.

Style 3 - Exploring Your Options
Resources for creating and refining a meaningful list of future pursuits. Take time here to reflect on your past interests and your dreams for the future. Brainstorm possible options and select the best as elements of your next phase.

Step 4 - Redefining Your Role
Your next phase toolbox. This package includes personalized pointers, your journal, a personal planning workbook and interactive reality checks, among other things. Use it to plan a future that fits your personality.

Once you have a plan, you are well on your way to an easy and successful next stage of your life.

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My Next Phase offers groundbreaking interactive tools that help people retire their way. It assists people in working through the important aspects of non-financial retirement planning.  Using a patent-pending personality-tailored process, My Next Phase guides members through the retirement transition helping them achieve a meaningful next phase in life. For more information, pricing, or to plan for your retirement, visit www.mynextphase.com.