What if, instead of looking forward to retirement, you created a life you don’t want to retire from?
Retirement planning is important. But the idea of this line in the sand at age 65 (now 67) where you cease to be productive is “not applicable” in many cases.
The retirement age of 65 was set by the original Social Security Act of 1935. In those days, if you survived infancy, you could expect to live to age 69. In other words, retirement lasted four years!
Today, the average life expectancy is ten years longer which creates two issues: 1) It’s harder to save enough for a long retirement, and 2) What are you going to do for all that time?
When we focus on Life Planning instead of retirement planning, the trajectory of your life starts to look different.
First, determine what’s important to your fulfilled life
Financial life planning asks:
- What is important to you to live a fulfilled life?
- How can you get more of that into your life today?
For most people, work is actually a key component of their fulfilled life. The best answer might be to make adjustments to your current work so it fits more naturally into your ideal life.
Despite our cultural stereotypes about work, work can be a genuinely satisfying experience that challenges you and lets you be creative and productive.
Identifying what you want and moving your life in that direction requires incremental changes. Slowly, you can start redirecting your money toward activities that bring you happiness and fulfillment.
Don’t wait until retirement to start living the life you want.
As you feel more fulfilled, it’s easier to save
Maybe it’s counterintuitive, but as you move toward your ideal life, as you start to create a life you don’t want to retire from, it becomes easier to save for retirement! When you’re actually doing the things that bring you meaning, you feel less need to spend money on things you hope will bring you happiness. Or you have less need to get a break from the grind when there is no grind.
As people start to implement their life plans, they also begin to reach their savings goals. They begin to save more and become comfortable with a less consumer-focused lifestyle.
It becomes more natural to live in the now and save for the future. You are enjoying your work more and having less need today for the income it produces.
Two big benefits follow: 1) You’re able to save more today and build up your nest egg, and 2) In your financial plan, we can assume some level of income to continue in your older years.
Your financial plan is strengthened through life planning. When you implement your life plan, your financial plan – your retirement plan – pretty much strengthens itself.
Eventually, make work optional
Hopefully, you have created a balance of working, earning, and spending that is fulfilling and satisfying such that you can just keep cruising past 67 and beyond. So instead of having a retirement goal, focus on the age at which work (for income) becomes optional.
We can choose what to do with our time: fill it or kill it. Work that is challenging and purposeful is often what brings us happiness. In our older years, work may be the best way to stay engaged, relevant, current, and youthful.
Instead of determining a retirement date, I like to talk about the point at which work becomes optional: the point at which you can choose to do it or not, or choose to do less, or choose to do something completely different.
And while I’m not talking about the drama and intensity of the FIRE movement, you can have a goal to make work optional well-before age 67.
Life planning, not retirement planning
What is important to you to live a fulfilled life? How can you get more of that in your life today?
Meditate on the questions and direct your money toward the answers that are in your heart.
Don’t wait until retirement to start living the life you want. Create a life you don’t want to retire from.
If you’d like to create a more fulfilling life today, and eventually make work optional, learn more about our services or contact us for a complimentary consultation about Life Planning.
About the Author
Gretchen Behnke, CFP®, RLP®
Gretchen Behnke is a fiduciary financial planner in Plano, TX. Pearl Financial Planning is a fee-only firm providing full financial planning and investment management services to independent professional women and couples. Serving local clients in-person or virtually, and virtual meetings for clients across the country.