It is a surprising fact that some people spend more time planning a holiday than they do for their own retirement. However my many years in financial planning have taught me that those who take the journey to retirement more seriously, usually have a smoother trip and much more fun as a result.
When I speak to clients who have already retired what comes across is that happily they often dispel many of the pre-conceptions associated with life in retirement. Many of these myths are often stated as fact in pre-retirement seminars, literature, press etc
I thought it would be a good idea to share some of these with you today.
Surprising Retirement Myth 1: Only Men Retire
Some people including women still believe this to be true. Not only does this misconception ignore the huge amount of career women active in modern Britain, but it also falsely assumes that women holding down 9-5 jobs don’t need retirement planning. That’s just plain wrong in my view.
Furthermore women who have been homemakers often have a more difficult voyage than those who retire from a job. Women must insist on being a full partner when they and their spouse retires. I’ve always stressed that women must give the same thought to retirement that their spouse does (sometimes even when husbands and partners may disagree!).
Surprising Retirement Myth 2: It’s a Piece of Cake
Many people are so determined to get out of the workplace or a career that they’ve loathed almost all their lives that they assume retirement will be the answer to all their problems. The day they walk out of the office for the last time they imagine being able to shove all their problems in a briefcase for one last time and then throw them in the river on the way home. At last they’ll be free… or so the thinking goes.
Whilst that may be true for some, sometimes people just see retirement through rose tinted spectacles without getting to grips with the nitty gritty aspects of what will make it truly special for them.
Very often they simply end up going back into work because they have no idea how to spend their new found leisure time. They’d never planned what to replace their work time with, no matter how much they may have despised it at the time… and therefore end up at a complete loss as to what to do with their days once the initial euphoria is over. Planning to get the balance right regarding your use of time is a paramount concern you are wise to address early on.
Surprising Retirement Myth 3: Retirement = Early Death
Whilst for some retirement can be tough it’s not often fatal!
Yes, we’ve all heard the stories of people who unfortunately die just after retiring, but the statistics bear solid witness that average life expectancy is very much on the increase. As long as you keep active and look after your health wisely there is no reason why you or your body should self-destruct early. Equally there is no point putting off retirement planning just because you fear retirement itself. That would be just as likely to contribute to your early demise.
Suprising Retirement Myth 4: Prior Success = Easy Passage
You would think it would stand to reason that people who find success in life prior to retirement would find it a breeze after retiring as well. So does the company director find it easier than the cleaner for instance? Surprisingly evidence suggests that the answer is very often no. Those who earn huge psychological benefits from a successful career often find it difficult to replace those feelings within their new non work environment. All retirees can build a better lifestyle, but it helps if you take time to think carefully about retirement planning well in advance to anticipate the above.
Suprising Retirement Myth 5: I’ll Downsize
One of the most common things I hear is that people say…
“my home is my pension. When I get to retirement I’ll just sell my property and get a nice wee flat somewhere and live of the profit.”
Laying aside the current property crisis, this attitude is often flawed because after all a home isn’t just an investment. It is just that… a home. It carries huge emotional attachment, is often where you raised your children, watched your grand-children play, built friendships and shared many memories. When it comes to giving all that up it’s not always easy.
Summary
Both men and women have their own retirement considerations, but knowing the myths and misconceptions about retirement and retirement planning will help you avoid foolish and very often needless mistakes.
Possibly one of the biggest challenges in retirement is knowing what to do with your time – besides of course ensuring that the pension you will live on is sufficient and ample enough to afford you the type of life you want to pursue in your latter years. Give careful consideration and planning to your future retirement now and you’ll be sure to avoid some of the myths that are still so prevalent.
A final tip? Well start planning now of course – prepare well and your plans will reward you well in return. Time has a funny habit of slipping by so quietly and speedily that before you know it your gold watch will be in your clutches and you’ll be clearing your desk for the last time, so be ready.
And above all just enjoy yourself when you get there – you’ve earned it!
Until next time…
