Why It’s Time to Measure What Matters in Your Retirement?

I usually talk about the intricacies of retirement planning—tax strategies, investment management, and asset allocation. But today, I want to step beyond the numbers and focus on something equally crucial: measuring what truly matters in your retirement. Warren Buffett once said, “The best investment you can make is in yourself” (Buffett, 2019). While this advice often applies to financial growth, it’s just as relevant to planning for a fulfilling retirement. After all, a secure retirement isn’t just about how much money you’ve saved; it’s about how you live your life with those savings.

What Really Matters in Retirement?

When preparing for retirement, it’s easy to focus solely on reaching a specific savings goal. But a successful retirement goes beyond hitting a number; it requires regular reflection on what brings you happiness and fulfillment. Let’s explore a few essential areas to measure and manage for a meaningful retirement:

Health and Well-being:

Your health is your most critical asset in retirement. Research shows that staying physically active and maintaining mental well-being can significantly impact both the quality and length of your life (Harvard Health Publishing, 2018). From a financial perspective, investing in your health today can save you from unexpected medical costs tomorrow. Make sure your retirement plan includes funding for wellness activities, routine medical checkups, and even unexpected health expenses to avoid eroding your savings.

Relationships and Social Connections:

Loneliness and isolation can be detrimental to both mental and physical health, especially in retirement. The Harvard Study of Adult Development found that close relationships are the key to happiness and longevity (Mineo, 2017). Evaluate your retirement goals to ensure they include time for family gatherings, outings with friends, or joining community groups. These activities not only enrich your life but also provide invaluable support networks that reduce stress and increase overall well being.

Financial Freedom:

Of course, a financially secure retirement is crucial, but freedom goes beyond having a robust nest egg. It’s about having the flexibility to make choices that align with your passions and values. Regularly reassess your financial plan to ensure it allows for spontaneous decisions, whether that means traveling, pursuing hobbies, or simply enjoying everyday pleasures without financial stress. Set aside a portion of your budget specifically for these experiences to maintain both peace of mind and joy (Bengen, 1994).

Joy and Laughter:

Never underestimate the financial and health benefits of a life filled with joy and laughter. Studies, such as those from the Norwegian University of Science and Technology, show that people who laugh more live longer and face fewer health issues (Svebak et al., 2010). Laughter reduces stress and promotes a positive outlook, which can, in turn, lead to fewer healthcare expenses over time. Incorporate activities that bring you joy into your retirement budget, whether it’s tickets to comedy shows, fun outings, or regular social gatherings.

Turning Reflection into Action
To truly optimize your retirement, don’t just measure your financial growth—measure what brings value to your life. Set aside time each month to assess these key areas: health, relationships, financial freedom, and joy. Make adjustments as needed, whether that means reallocating funds to experiences that bring happiness or setting new goals for personal growth.

Retirement should not just be about surviving financially; it’s about thriving personally. By focusing on these broader measures, you can ensure your retirement is not only financially secure but also deeply rewarding and fulfilling.

So, take action today. Start measuring what matters most to you, and make your retirement years the most enriching chapter of your life.

References

• Buffett, W. (2019). Warren Buffett’s Advice on Investing in Yourself. [Online]
Available at: Buffett’s Website.

• Harvard Health Publishing. (2018). Exercise and Aging: Can You Walk Away from Father Time? [Online] Available at: Harvard Health.

• Mineo, L. (2017). Good Genes Are Nice, but Joy Is Better. Harvard Gazette. [Online] Available at: Harvard Gazette.

• Svebak, S., Romundstad, S., & Holmen, J. (2010). A 7-Year Prospective Study of Sense of Humor and Mortality in an Adult County Population: The HUNT-2 Study. International Journal of Psychiatry in Medicine, 40(2), 125–146.

• Bengen, W.P. (1994). Determining Withdrawal Rates Using Historical Data. Journal of
Financial Planning, 7(4), 171-180.

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Kurt Supe, Brian Quick and John Culpepper offer securities through cfd Investments, Inc., Registered Broker/Dealer, Member FINRA & SIPC. Kurt Supe, Brian Quick and Andrew Drufke offer Advisory services through Creative Financial Designs, Inc., Registered Investment Adviser. Creative Financial Group is a separate unaffiliated company. The CFD Companies do not provide legal or tax advice.