Retirement regrets
Retirement is often depicted as a golden phase of life, but the reality of retirement doesn’t always shimmer. More than half of retirees have retirement regrets, according to a 2018 study by Global Atlantic Financial Group. Whether you’re in retirement or looking ahead to it, there are lessons to be learned from those who entered the stage and found it wasn’t exactly as they expected. Follow along as retirees weigh in with their biggest regrets.
Failing to make a detailed financial plan
Drew Parker, a retired financial manager for a Fortune 500 company in Mercer Island, Washington, wishes he had made a more detailed financial plan before retirement. “Knowing what I know now, that I didn’t know before, has afforded me the opportunity to make adjustments to improve my margin of error and to make more informed decisions,” says Parker, who created CompleteRetirementPlanner.com. “This knowledge would have been exponentially more valuable at a much younger age, so I encourage others to take the time to do their own due diligence and to create a comprehensive financial plan based only on their own unique circumstances and needs.”
Not setting goals for retirement
Retirement provides an opportunity to do what you want to do, but you also need to figure out what you want to achieve in retirement. “It took me quite some time to transition from a work mindset to the freedom of retirement,” says Stephanie Cunningham, a retired policy officer for a state-level higher education board in Islington, Australia. “I had to look at what I really wanted to achieve and what was my passion now that I had time and income to do pretty much what I wanted.” Cunningham spent time trying new activities and discarding those that weren’t a good fit. “Failure was a part of this retirement journey,” Cunningham says. “At this point in time, I am quite happy in my retirement, but it took years to achieve this.”
Counting on working until age 70
Timothy Wiedman, a retired professor in Ionia, Michigan, became an academic after asuccessful management career. Shortly after turning 60, he was granted tenure and promoted to associate professor. But his dream job didn’t last due to health problems. “Worsening sciatica in my left leg, coupled with diabetic nephropathy and nerve damage in both feet, made it clear to me that teaching until I turned 70, in order to max out my Social Security benefits, was not the viable option that I had once envisioned,”Wiedman says. “Thus, my long-time retirement plans that included ski trips into Colorado’s nearby mountains went by the wayside.”
Losing touch with adult children
Edd and Cynthia Staton, authors of “Mission: Rescue Your Retirement,” were financially devastated by the economic crisis of 2008. “Our solution to this catastrophe was to retire early and move abroad to a lower cost of living,” Staton says. The couple decided to relocate to Cuenca, Ecuador, where their limited budget stretches much further. Their two adult children felt blindsided by their abrupt move overseas. “Our two adult children were just getting started with their lives and we didn’t want to burden them psychologically or financially with our problems,” Staton says. “We later found out that both were hurt by our honest attempt to shield them from our personal challenges and felt abandoned. Our advice is it’s OK to share the good and bad with your immediate family. If you’re concerned about your financial future or even what you’re going to do with yourself 24/7/365, let them know and seek their input.”
Experiencing social drawbacks of early retirement
An early retirement can seem like a dream come true, until you realize that most of the people you would like to spend more time with will still be busy working. AJ Borowsky, author of “What Next: A Proactive Approach to Success” in La Quinta, California, retired from a 25-year career in television news at age 48. “While I’m generally satisfied with my early retirement, there is one thing that people looking to retire early, especially, should consider. While you suddenly have large amounts of free time, your friends are still working, so the very people you would want to spend time with are unavailable,” Borowsky says. “I think a big reason for boredom in early retirement is the lack of similarly aged friends.”
Not focusing on what really matters
Shortly after remarrying to form a blended family of five children in 2006, Greg Huntington faced a corporate downsizing and took a voluntary retirement separation package at the end of 2007. He spent the next years adjusting to a new life and role and founded True Joy Acoustics in Cincinnati. “Managing money, health, children’s college pursuits and creating a second-act career identity are important, but it has become clear to me that successfully staying above water in these areas is insufficient,” Huntington says. “Never sacrifice your soul and soul mate. A deep sense of spirituality and love in your retirement years will empower you to tend to everything that truly matters in life.”
Failing to embrace a slower pace
After a lifetime of being constantly busy, it can be difficult to slow down in retirement.“I have always pushed myself to be the best that I can be and to achieve as much as possible. I am beginning to realize that it is OK to enjoy the fruits of my labor, to be proud of my achievements and to take life a bit easier,” says Beverly Solomon, a designer phasing into retirement near Austin, Texas. “I want to stay in good shape mentally and physically, and I want to stay creative, but it is really fun to peacefully walk my ranch, to go rock hunting, to travel and to sit by our springs and slowly sip a glass of wine while watching the sunset.”
Not starting a second act career sooner
After stepping away from the office, Lisa Powellstarted a pet-sitting service, Critter Sitter of VA, in Fredericksburg, Virginia. “I’m loving retirement from accounting and my newfound joy. In hindsight, I’m not sure why the idea didn’t come to me sooner; it seems so clear now,” Powell says. “It’s been a balancing act at times with high demand and just not enough hours to personally handle it all. At times I wish this all happened years ago, when the spring in my step was a little quicker. I spend a lot of time going from client to client, so that gives me time to think of goals and plan for the future stages of my business.”
Underestimating the risks of retirement
Leaving behind a steady paycheck to retire is a big risk.“Retirement planning is more risk management than portfolio management, although portfolio management seems to get all the press. Focusing my retirement decision primarily on investing drew my attention from the other risks of retirement, like family members who might need financial support and health care shocks,” says Dirk Cotton, a retired executive in Chapel Hill, North Carolina, and author of The Retirement Café blog. “There were dozens of other risks, some more manageable and some not, that I didn’t consider, but would have if I had approached my retirement planning more from the perspective of risk management than as an investment game.”
Holding onto stuff instead of memories of experiences
Jonathan Look, founder of LifePart2.com, planned to sell everything he owned and travel the world in retirement.“While for the most part I succeeded, there were some things – keepsakes, special gifts and sentimental items – that I couldn’t bring myself to get rid of,” says Look, who currently resides near Lisbon, Portugal. “Eventually I pared everything down to a large Tupperware container that I stored at a relative’s house. Now, after seven years, I cannot remember what is in the container, but I know I still have to deal with it. I wish I had realized that the value of these items is in the memories they represent, not in the things themselves.”