FINANCE
Getting (mentally) ready to retire
Even those who have saved millions must prepare for a lifestyle adjustment
A successful retirement is not merely measured in
financial terms. Even those who retire with small for-
tunes can face boredom or depression and the fear
of drawing down their savings too fast. How can new
retirees calm these worries?
Two factors may help: a gradual retirement transi-
tion and guidance from a financial professional.
An abrupt break from the workplace may be unset-
BRUCE
tling. As a hypothetical example, imagine a well-paid
LINGER finance manager at an auto dealership whose per-
sonal identity is closely tied to his job. His best friends
are all at the dealership. He retires, and suddenly his friends and
sense of purpose are absent. He finds that he has no compelling
reason to leave the house, nothing to look forward to when he gets
up in the morning. Guess what? He hates being retired.
On the other hand, if he prepares for retirement years in advance
of his farewell party by exploring an encore career, engaging in vari-
eties of self-employment or volunteering, he can retire with some-
thing promising ahead of him.
The interests and needs of a retiree can change with age or as he
or she disengages from the working world. Retired households may
need to adjust their lifestyles in response to this evolution.
Practically all retirees have some financial anxiety. It relates to
no longer earning a conventional paycheck. You see it in couples
who have $60,000 saved for retirement; you see it in couples who
have $6 million saved for retirement. Their retirement strategies are
about to be tested, in real time.
While no retiree wants to squander money, all retirees should re-
alize that their retirement savings were accumulated to be spent.
Being miserly with retirement money contradicts its purpose. The
average 65-year-old who retires in 2017 will have a retirement last-
ing approximately 20 years, by the estimation of the Social Security
Administration. So, why not spend some money now and enjoy re-
tired life?
Broadly speaking, our spending declines as we age. One study
suggests that the average U.S. household headed by an 80-year-old
spends 43 percent less money than one headed by a 50-year-old.
Retirement challenges people in two ways. The obvious chal-
lenge is financial; the less obvious challenge is mental. Both tests
may be met with sufficient foresight and dedication.
Bruce Linger, CFP®, CRPC®, CCFS™, is a registered representative
and investment advisor representative of Lincoln Financial Advisors
Corp., a broker-dealer (member SIPC) and registered investment ad-
visor, 61 S. Paramus Road, Suite 425, Paramus, NJ 07652, 201-556-
4564, offering insurance through Lincoln affiliates and other fine
companies. This information should not be construed as legal or tax
advice. You may want to consult a tax advisor regarding this infor-
mation as it relates to your personal circumstances. The content of
this material was provided to you by Lincoln Financial Advisors for
its representatives and their clients.
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■ MARCH 2019 75