Weekend Reading: The Retirement Rush
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
A global pandemic has the power to bring about a plethora of abrupt life transitions, and for many baby boomers, that included stepping into retirement earlier than expected. For some, this transition was voluntary, but for others, it was an unplanned move, creating not only financial concerns, but an emotional impact as well.
READ THE ARTICLEAn advisor’s role: Individuals who find a sense of identity in their work can sometimes step into retirement with feelings of loss and distress. Past podcast guest and life planning specialist, George Kinder, has dedicated his career to helping people process and plan for these feelings, and believes financial advisors should do the same, in their own capacity. In that light, advisors who utilize life planning and listening skills to help clients learn to articulate their fears, often see clients emerge from a transition into retirement re-energized.
Maintaining transparency: At the same time, individuals who voluntary rush into retirement might find that the grass isn’t always greener on the other side. The article suggests that advisors should remain candid about the ongoing risks in retirement (longevity risk, market risk, health risk, etc.), and also encourage a period of contemplation to truly identify if stepping into retirement sooner, rather than later, will bring fulfillment.
The power of planning ahead: While you should avoid an abrupt transition into retirement, that may not be possible. Be prepared both financially and psychology well before the inevitable occurs.