Secrets to a Happy Retirement

Most retirees will agree that not worrying about going broke or paying for medical care during retirement is important. Many also agree that money alone doesn’t make for a truly gratifying retirement.

Here are some tips—related to both financial matters and things money can’t buy—that can help you make the most of your golden years.

Have a shared vision for retirement with your spouse

Thinking about where you want to live during retirement is a good start. U.S. News & World Report publishes an annual “Best Places to Retire” study based on various factors including taxes, affordable housing, happiness ratings, and desirability. This is a good place to begin if you’re unsure of where to settle during retirement.

Should you both envision brand-new environs, it’s perhaps more practical to consider renting before you buy. This is especially important if the location is far away from friends and family and/or you are unfamiliar with the area. In the worst case scenario, if you’re both unhappy in this new place, you’re well-primed to pivot more quickly and with less hassle if you don’t need to sell a home.

You should also talk through the potential scenario of retiring at different times, which can help relieve any tension before it arises. Basic activities—such rising in the morning at the same time (versus one spouse always sleeping in), assigning household chores, and not feeling trapped at home while your spouse works—are significant factors to help maintain a healthy marriage.

Establish a daily routine

This newfound freedom you have, although positive, can lead to a few negative health consequences if you don’t know what you’re in for during retirement.

Staying up late, waking up late, and keeping erratic eating schedules are just a few bad habits retirees can slip into if they’re not careful. How you start your day, for example, can set you up for success. One Ohio State University study found that your morning mood has the power to determine your productivity for the day. By establishing good morning habits and sticking to a routine, you’ll give yourself the structure you became accustomed to during your working years while still leaving time for everything you want to accomplish.

Strengthen your relationships

Juggling a 9-to-5 job, a family, and a relationship can take its toll. Now that you are retired, you have time to nurture the relationships you may have put on the backburner for years. Many benefits are associated with strong personal relationships. In fact, Harvard research found that people who are more socially connected are happier, healthier, and live longer than their less-connected peers. Isolation, on the other hand, can yield devastating effects such as a decline in brain function and a shorter life span. According to Dan Buettner, the author of Blue Zones—a book dedicated to uncovering the secrets of longevity—loneliness can potentially shave eight years off your life. This is reason enough to seek out strong bonds and connections with those closest to you.

Live an active lifestyle

According to various sources including WebMD, about 30 minutes of daily activity that gets your heart going and blood pumping (such as a brisk walk) can lower your blood pressure, keep your bones, muscles, and joints healthy, ease symptoms of depression or anxiety, lower your risk of heart disease, and help manage chronic conditions like diabetes and arthritis. Ultimately, retirees who stay fit and active give themselves better odds to dodge unnecessary healthcare expenses: a win-win for your well-being and your wallet.

Plan for the unexpected

While it’s impossible to plan for every scenario out there, a few common ones often catch retirees by surprise. These include:

Housing expenses that don’t disappear in retirement
Even if you’ve paid off your mortgage, you’re still unlikely to avoid home repairs and/or renovations in the years to come. For example, remember that most houses aren’t designed with old age in mind. Therefore, if you require wheelchair accessibility or need to expand a bathroom or convert existing space so key areas are all on one level, expenses can quickly pile up. Even a brand-new home isn’t immune to accidents and weather damage that homeowners insurance may not cover.

A Medicare plan that doesn’t cover as much as you think
Put bluntly, Medicare isn’t free. While Part A (hospital insurance) premiums are generally free, you may encounter deductibles if you’re hospitalized. Most people pay a monthly premium for Part B (medical insurance), which starts at $170.10 per month and can rise as high as $578.30—depending on your income.

What’s more, Original Medicare (Parts A and B) won’t cover everything. Therefore, you’ll need to consider Medigap and Medicare Advantage plans for vision, dental, hearing, and prescription drug coverage.

Medicare also only covers long-term care in very limited circumstances. Consequently, you’ll need a policy that—according to the American Association of Long-Term Care Insurance—can range anywhere from $2,085 to $4,935 annually, depending on your age and coverage amount. Otherwise, should you forego a policy, you’ll need to take out an insurance rider (also pricey) or afford expenses on an out-of-pocket basis.

Family members who still need help
A recent Bankrate study reports that 50% of parents with adult children are sacrificing, or have sacrificed, their retirement savings to help children financially. While putting your children ahead of your retirement needs is noble, you’ll need to understand related financial impacts on your future and draw the line, accordingly—though of course that’s perhaps more difficult than it sounds. Helping children establish and implement budgets and assume responsibility for specific expenses can help them gain financial independence.

A need to identify potential income gaps
An unpleasant scenario that requires planning nonetheless is for one spouse to pass away before the other. As it relates to Social Security, if this occurs, the surviving spouse can take what’s called a “survivor benefit” that allows him/her to collect a check or that of the deceased—whichever is higher—regardless of whether the surviving spouse has earned enough credits. Know that even with the survivor benefit, you may still need to fill an income gap.

In sum: retire, happily!

While retirement is in many ways all it’s cracked up to be, that’s not to say it doesn’t come with its own fair share of unique challenges. Thankfully, a well-executed game plan—from both a mental and financial perspective—can help ensure this period in your life is a little (or a lot!) more gratifying.

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Vision Retirement is an independent registered advisor (RIA) firm headquartered in Ridgewood, New Jersey. Launched in 2006 to better help people prepare for retirement and feel more confident in their decision-making, our firm’s mission is to provide clients with clarity and guidance so they can enjoy a comfortable and stress-free retirement. To schedule a no-obligation consultation with one of our financial advisors, please click here.

Disclosures:
This document is a summary only and is not intended to provide specific advice or recommendations for any individual or business.