Senior Spotlight: What Makes A Smooth Retirement Transition

Retirement is not always as 'easy' as one might think - but doing this one thing might make it easier!

In a survey conducted by “Life Is In the Transitions" author Bruce Feiler, two turning points in life have been identified. Respondents declared that both ages 20-24 and 60-64 marked ultimate transition periods. The latter applies to the topic of this blog feature – but how do we ensure that this transition in life is a positive one? Can retirement really be ‘hard’? It can – as revealed on the most recent “Friends Talk Money” podcast. Below we have summarized the key findings from co-hosts Terry Savage, Pam Kreuger and their guest Richard Haiduck. We encourage you to listen in HERE as well!

If you ask author Richard Haiduck (“Shifting Gears: 50 Baby Boomers Share Their Meaningful Journeys in Retirement ”) – there is one key feature of the retirements that come easiest – they arrive slowest! That is right; those who found the transition to retirement easiest were the ones who made the lifestyle change gradually. "Those people who had an abrupt stop [had a harder time]," Haiduck said. "In other words, on Friday they worked at the bank and on Monday they were retired and they went from full-time working to full-time retirement."

Let’s also back up a bit and define what retirement looks like. Haiduck reiterates what we have witnessed in Baby Boomer retirements for years, that older adults of today don’t stop, they just stop working in the manner they have been for decades. But they typically pursue an active retirement - explore diverse interests, test boundaries, establish new purposes and may even launch new businesses or dedicate their time to non-profits. Personal finance writer and podcast host Terry Savage recently interviewed Haiduck and agreed that “…the world's best role model for retirement [is] continuing to do what you love to do, giving yourself the opportunity to do creative things that you might not have done before and enjoying life and giving back.”

While no one can argue that doing what you love is a poor choice in retirement, there is one thing that can make or break it in reality: money. "You're gonna need more money than you think; work longer, save as much as you can for as long as you possibly can," said Savage. Haiduck similar found in the retirees he spoke with in authoring his book that most were unprepared financially. Wealthramp founder Pam Krueger advises that every prospective retiree “close your eyes for just a second and imagine a day in retirement and see what that looks like to you and what that feels like. If it's going to require more money, plan for that vision."

We think this is great advice – do you agree?!