Rosalind Evans
Many believe that consulting a financial advisor is only about managing finances. But there’s another crucial topic to cover: your health. If you’re not in good health, the dream retirement you’ve envisioned may not be possible. To put it more bluntly, if you’re not alive, well, you get the idea. In this article, we explore four financial missteps that could jeopardize your perfect retirement.
1) Overlooking Health Span
We’re often focused on lifespan—the number of years we’ll live—rather than our health span, which is the length of time we can expect to live healthily. While I may jest about living to 120, the point is moot if I’m not healthy enough to enjoy those years.
I’ve been diving into Peter Attia’s book “Outlive,” which delves deeply into longevity and health. Two transformative insights from the book are: 1) Start making health-conscious decisions now to prevent long-term ailments. 2) Opt for more natural foods. Regardless of your dietary philosophy—Vegan, Keto, Mediterranean, etc.—consuming more whole foods is generally a step in the right direction for better health.
Whatever your retirement goals may be, it’s unlikely they include prolonged stays in a healthcare facility or being tethered to medical equipment. Decisions you make now could greatly affect your health, potentially safeguarding your retirement from medical setbacks.
2) Depleting Retirement Funds
The fear of running out of money is a pressing concern for many retirees. Being financially strapped at 80 is not a scenario anyone wants to find themselves in. If you’re still part of the workforce, consider ramping up contributions to your retirement accounts. Aim to accumulate enough to maintain your lifestyle throughout your golden years. For those already in retirement, develop a budget that minimizes the risk of outliving your financial resources.
Many of my clients opt to work post-retirement simply because they enjoy it. And there’s a marked difference between choosing to work and having to work to make ends meet.
3) Underestimating Life Expectancy
If you pass away shortly after retirement, concerns about longevity, healthspan, and finances become moot. However, don’t be misled by average life expectancy figures. Especially if you’re healthier than most, you could outlive these estimates. Remember, life expectancy tends to increase with each year you remain alive. Current estimates place a 65-year-old male’s life expectancy at 83, and a female’s at 86, even though the general averages are 73 for men and 79 for women.
4) Retiring from Work, Not into a New Phase
Work defines a large portion of our identities and occupies much of our time. But what will you do when that 40+ hour workweek is no longer a part of your life? While leisure activities might be enjoyable in small doses, imagine doing them non-stop. Whether it’s endless beach days or too many rounds of golf, the novelty could wear off.
Importantly, lacking a sense of purpose could negatively affect your longevity. Finding a passion or engaging in fulfilling hobbies could not only bring happiness but also add years to your life.
The point is to retire into something fulfilling. Some people find second careers with fewer stresses, while others dive into hobbies or community work.
Ultimately, a healthier lifestyle is a double-edged sword: it may extend the time your retirement savings need to last but can also make your retirement years more pleasurable. To balance this, work with a fee-only fiduciary financial planner who can help you devise a strategy to not outlive your retirement nest egg.
A fulfilling retirement isn’t just about having enough money; it’s also about having good health and a meaningful way to spend your time. Whether you’re nearing retirement or still have years ahead in the workforce, the choices you make today can significantly influence your future. Living a healthier lifestyle and making wise financial decisions can make all the difference in achieving the retirement you’ve always dreamed of. Consult with a fee-only fiduciary financial planner to optimize your financial strategy, and don’t forget to invest in your health and well-being as well.
