Retirement is not a destination, but rather a whole new journey of life. With the gift of greater longevity, today’s retirees have more opportunity than ever to make the most of their years, activities, contributions and relationships.
It’s important to look at four lifestyle factors before clients transition to retirement:
- Legacy: Retirement vehicles are a great way to leave a legacy for loved ones as it offers some protection and is highly tax-efficient. However, legacy building isn’t always just about bequeathing money. For some, legacies are about a family’s history and values or passing down family heirlooms to the next generation. It can entail a vacation property in a trust or donating to a charity. You can use various estate planning methods to ensure assets are distributed according to your client’s wishes including writing a will, selecting beneficiary designations, and creating a trust. The most important part is uncovering what legacy your client wants to leave.
- Goals, dreams and aspirations: Clients who set goals at retirement have a renewed sense of purpose, direction and accomplishment. Setting long-term goals requires us to act in a meaningful way over a long period of time, working on a plan that encourages clients to make decisions, monitor their progress and have something to look forward to. Clients need to spend more time reflecting on the transition and what the next phase of their lives would look like, including both monetary and non-monetary goals.
- Relationship with money: A client’s relationship with money has a significant impact on accumulating wealth and retirement savings. Clients no longer have the benefit of time. Therefore, exploring their habits and attitudes related to money that subconsciously influence their decision-making is key. They need to understand their connection with money and move beyond any obstacles that may be blocking their way to success.
- Lifestyle transition: —Retirement is a life-course transition. Clients need to find purpose in the next stage of their journey. Often there is no one to walk the journey of managing and embracing change with them. Your role is to help clients set new goals, acknowledge their emotions and redefine their identity. Together you need to plan a joyful and exciting transition into their post-work years.