How to Find Your Retirement Joy: In this video and in the article below, Erin Wood CFP®, CRPC®, FBS® of Carson Group provides tips on how to find fulfillment, happiness, and “joy” in retirement through pursuing meaningful activities and relationships. Retirement planning isn’t just about money. It’s about living the life you want. Here’s how one planner helps clients visualize and then achieve their dream retirement. Make the most of your retirement. Watch more free retirement videos on FinStream at this link: https://www.finstream.tv/videos/retirement-planning/

Article: How to Find Your Retirement Joy

By Erin Wood, CFP®

I do an activity with my clients when we are beginning retirement planning. I give them a stack of about 30 postcards and ask them to pick the five that best represent their ideal retirement. It’s a great way for them to focus on their wants and needs and it helps me to better understand what they want to achieve. I recall a session from a few years back with a couple in their mid-50s. The husband had been married previously and had grown children, while the marriage was a first for the wife. Throughout our session, their financial worries kept bubbling up. He was still reeling from his costly divorce, while her retirement savings were designed with just one person in mind. As they sifted through the postcards, a story began to unfold. One postcard depicted serene woods. Another showed a babbling brook, and a third displayed a pile of books. These images were pieces of the house they had been dreaming about together. They knew exactly how it would look: It would be a modernist cabin nestled among trees, with a wall of windows in the back overlooking a creek. It would have a library with floor-to-ceiling bookshelves, built-in reading nooks, and a showstopper of a fireplace. They envisioned gathering their family around the Christmas tree, which would have a prime place in front of the windows. They presumed that, given their financial situation, this dream was unattainable. I wasn’t so sure. We contacted a real estate agent to price out lots with their specifications. An architect drew up plans and helped come up with a construction budget. Yes, given their current savings they wouldn’t be able to afford the dream home. But would they be willing to work part-time for a few years longer to make it work? That was a trade-off they were willing to make. I do this exercise because I want my clients to visualize life post-retirement. Creating a retirement plan contributes significantly to future happiness and, without one, there’s a risk of isolation and depression. Research shows that 28% of recent retirees found retirement life to be less fulfilling than their working years. But with careful planning, you can find your joy in retirement. Here’s how.

Retire to something, not from something

For my clients, the dream home was both a place to live in retirement and an activity that brought them closer. For several years they planned and worked on this project together. They took such joy in designing every corner of the home so it reflected both their personalities perfectly. But that’s not how many people enter retirement. Many stumble into it, completely unprepared for how they’ll spend their time. For some, retirement comes sooner than they expected, perhaps because of a health issue or a layoff. Suddenly, they have to figure out what they’ll do all day. I can’t tell you how many times I’ve had men in my office who tell me that they can’t wait to retire so they can golf all the time. I dig deeper: How many hours a day do you intend to golf? Who will you play with? How much will it cost you to join a golf club? Do you think you’ll get bored of playing only golf? When we start drilling down, it turns out golf is a stand-in for retirement, based on what retirement looks like on TV and in magazines. They don’t actually have a plan. But I also see people who are the complete opposite. They’re happier than ever because their days are so full and meaningful. They have retired to something. One of my clients is a retired accountant. Throughout her career she sold cosmetics on the side. Now that she’s packed up her calculator and spreadsheets, she’s devoting herself full-time to her side hustle. She jumps out of bed each morning, buzzing with ideas about how to make her business more successful and grow her revenues.

Plan to stay engaged

For better or worse, work gives shape to our lives. Research shows that we derive great happiness even from small social interactions, much like those with coworkers. Looking at baby photos, hearing about vacations, and Monday-morning quarterbacking all contribute to our well-being. But when work ends, these minor social ties often end too, depriving us of a major source of happiness.

How to Find Your Retirement Joy

Instead of relying on work for your social fix, be intentional about engineering social interactions. There are so many ways to keep active. Here are just a few you could try:

Volunteer: There’s no better way to stay actively engaged than giving your time to an organization or a cause that speaks to you. While helpful, volunteering for tasks you can do on your own won’t give you the same social benefit, so seek out volunteer opportunities that involve other people. When one of my clients retired, she began volunteering nearly 30 hours a week for a non-profit whose cause is close to her heart. Unlike a job, she gets to decide how much time she’ll put in.

Part-time work: A part-time job is a great way to supplement your retirement income while also keeping you socially active. You might even be able to land some perks too, helping you save on your favorite hobbies. For example, if you’re an avid golfer, a job at a golf course can help you meet other golfers and score time on the links. Or working at a craft store can get you discounts on supplies for your own crafting.

Join a group: Are you an outdoor enthusiast? A bridge player? A bookworm? There are groups for just about every interest, helping you stay active and meet like-minded people. Check with your local senior or community center to find a list of activities and hobby groups.

Continue your learning: Learning doesn’t have to stop once you retire. Colleges and universities offer a variety of lectures and seminars that are open to the public. Senior centers and local recreation departments also hold classes, often at more affordable rates than other institutions.

Start a business: Entrepreneurship isn’t just a young person’s game. A research paper suggests that business owners over 50 are more likely to succeed than a 30-year-old founder. Your business will benefit from the years you’ve spent building your expertise.

What about your finances?

When you think through what you want to get out of retirement, you can begin to research how much it will cost. Because your retirement will be unique to you, traditional rules of thumb will only get you so far. Financial advisors often tell people they should have enough assets to replace roughly 80% of their pre-retirement income. But if you’re the type of person who plans to work part-time because you crave human interaction, then your retirement nest egg doesn’t have to be that big. Likewise, if your retirement plans revolve around volunteering and spending time with family and friends who live close by, then you won’t need as much retirement income as someone who plans to travel six months of the year.Only when you have a clear vision of how you’ll spend your retirement can your savings align. By starting your retirement planning early, you can let your retirement dreams drive your whole plan, much like my clients and their cabin in the woods. You’ll know what you’re working toward instead of stumbling into an unsatisfying retirement.

About the author: Erin Wood, CFP®

Erin Wood, CFP, CRPC, FBS is Senior Vice President, Financial Planning and Advanced Solutions for Carson Group. Erin speaks and works with firms nationally to incorporate a people-first planning approach within their firms, using tax planning, trust, retirement and insurance strategies. In 2023, she was named “Thought Leader of the Year” at WealthManagement’s Wealthies awards. Carson Group, a registered investment advisor with over $30 billion in AUM, serves more than 49,000 families and is dedicated to helping clients find their freedom through a planning-first approach, objective advice, and unmatched personal service.

Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors, address 14600 Branch St. Omaha, NE 68154. Erin is a non-registered associate of Cetera Advisor Networks LLC.

The opinions contained in this material are those of the author, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Advisor Networks LLC cannot guarantee or represent that it is accurate or complete.