Financial Planner Anthony Delauney, CFP, author of Roadmap for a retirement without regrets, asserts that the vision of retirement is what “influences emotions in retirement”. It includes activities a retiree may want to continue doing (or stop doing) as well as things new to them that they may not have had as much time to do in their pre-retirement years, Delauney says. . a person’s vision of retirement may not be directly financial, it has financial implications (which is why Delauncey is so keen on urging people to create one for themselves). In other words, by identifying what a person (and who) values in life, he says, they will have a better idea of how to plan for retirement, which will be question the way they made their financial plans.
For example, going from homebody to globetrotter in retirement will indeed require financial foresight to make this jet-set lifestyle possible. But before you do anything, it’s essential to ask yourself if it’s even something someone wanna for themselves. That’s why establishing a retirement vision is the primary non-financial component of planning, says Delauney.
“Think about the things that bring you constant joy in your life.” —Anthony Delauney, financial planner
So, where do you start to define your vision of retirement? “It’s really important for individuals to take a step back and think about the things that bring them constant joy in their lives,” Delauney says. Those people, places, and activities that bring joy are what you should focus on when taking a non-financial approach to retirement planning.
During their working years, many people may have a structure that they adhere to. They may wake up and fall asleep around the same time, start work at a certain time, and may even have such an overwhelming to-do list that they don’t have much free time. Although Delauney recommends retaining at least some structure in retirement life (whether that looks like volunteering, hobbies, or even part-time work), how an individual organizes it depends on ultimately about him and his vision.
As an example, consider three distinct visions of retirement: 1. primarily wanting to stay home, spend time with family and travel occasionally; 2. wanting to sell your current home, buy a retirement home and live there while volunteering at a local shelter; 3. want to spend each season in a different country for as many successive years as possible.
Each of these three scenarios has its own unique financial implications. And that very reality highlights the benefit of identifying a vision of retirement earlier in life, Delauney says. When you know what you want your retirement to look like, you can put a dollar amount on what it would take to achieve your retirement vision.
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