By Money & Finance Editor Ellen Duffy, CFP™
As financial advisors, one of our primary responsibilities is helping our clients prepare for retirement. Preparing for maintaining a standard of living in retirement includes conversations on saving, investing, taxes, expenses, liabilities, health and healthcare, social security, preparing for the unexpected, insurance and estate planning… among others!
We have access to sophisticated planning and projection tools that have vast modeling capabilities for various scenarios, “what-ifs,” and a range of outcomes. Yet, with all of our financial preparation and analysis, many retirees report feeling unprepared for the loss of a sense of purpose and mattering.
Mattering is the feeling that you are valued by others and have value to offer to the world. For many people, their working years provide an identity, structure, and impact. Colleagues rely on you. Coworkers provide ongoing social interaction. Teamwork is rewarding. Your expertise solves problems and makes a difference.
For some, working years often overlap with integral roles in raising a family. When aging and retirement removes these roles, even financially secure retirees can experience an unexpected and profound sense of loss.
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“The true shock of retirement is rarely financial; it is psychological. It is the quiet realization that you are no longer necessary. Solvency sustains the household, but utility is what gets us out of bed.” – Wayne Knuckles, career writer and Sports journalist for The Pineville Sun. |
A 2024 study published in the Canadian Journal on Aging, found that while most retirees plan carefully for their financial well-being, retirement planning rarely considers what their lives will be like once they stop working. Some of the more significant challenges retirees reported were psychological and social, such as boredom, loss of structure, loss of social interaction and connection.
The study concluded that staying connected and engaged in the decades ahead was the strongest predictor of retirement satisfaction. The most satisfied retirees are often those who find new ways to contribute — mentoring or consulting, volunteering, serving on boards, or supporting family in meaningful ways.
What does retirement look like for you? How are you preparing for a fulfilling and much deserved retirement?
Health, Wealth, Community- It’s All Connected!
Ellen Duffy is a Certified Financial Planner™, founder and owner of Parkway Wealth Management, a comprehensive financial practice with a focus on women and families. Learn more about Ellen and Parkway Wealth Management at www.parkwaywealth.net. Investment advice offered through Private Advisor Group, a registered investment advisor.