The Agony and Ecstasy of Retirement Living in a Pod
Living alone is expensive, and it can be lonely, too. A group living situation opens up a lot of happy possibilities, even if it can come with some downsides.


I have been writing about a new way of living in retirement: Pods. Why? Because according to Northwestern Mutual’ s 2018 Planning & Progress Study, 21% of Americans have nothing saved at all for their golden years, and a third of Americans have less than $5,000.
I’m not going to lecture you about the fact that the way you may have planned to live in retirement will not pan out. What I’m doing is offering you a future that could be spent with friends and family while sharing expenses, a future of ecstasy.
The Pod
What’s a Pod? It’s a shared-living arrangement that offers a safe place, like peas in a pod — protected, close to others, warm and cozy. It’s pooled skills, pooled resources, with lives as separate and individual as you want to make them. It can be a close-knit group of friends — women friends, in the case of my planned Pod, but not necessarily. You can even join, or form, a Pod as a couple.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A Pod is also the term used to describe a group of dolphins — creatures that have the whole ocean to roam and new horizons to explore every day, while at the same time knowing that they are not alone. There’s a built-in support group that dolphins have for security and companionship. Dolphins work together to gather food, and they team up for protection. Like us, they’re social.
It’s not so much a structure as a concept. A Pod can be whatever you make it, if you remember those two goals — financial security and companionship.
For me the prospect of living in a Pod gives me a feeling of ecstasy when looking forward to my later years, instead of experiencing that overwhelming feeling of dread of isolation and loneliness.
The Ecstasy
Take a serious look at your assets and your expenses. How much more would you need to have to spend two weeks, or even one month a year in that little place on the Gulf Coast, painting landscapes? Or, digging for dinosaur bones in Montana? Or, taking the grandkids to Orlando to visit Disney World? Or, holing up by yourself in that little cottage on the coast of Maine, writing that novel that will make you the next Stephen King or Jessica Fletcher. (They both did it in Maine, after all.) Or, knowing that as you sit at home on your porch watching a sunset, or in a cozy room watching Netflix, that your bills are paid and you have enough left over for at least a couple of items in a new fall wardrobe?
If the difference is one that you could make up if some of your core expenses were shared by living in a Pod, then… perhaps… Hello, Orlando, Hello Mickey!
There are many designs for a Pod. You can share a house. You can get adjoining houses in a retirement community and pool certain essentials. You can do the same thing in your old neighborhood, with the people you grew up with and know well. You can even make a multigenerational family Pod.
I didn’t invent this concept, we have all watched The Golden Girls; I’m just suggesting that you think about this if you don’t feel confident you’ve saved enough for retirement – or if you want a retirement that’s more luxurious, fun and fulfilling than you could otherwise afford. All Pod life asks for is the ability to compromise (and a lot of good humor). In return, it can give you the life that you want.
The Agony
Now for the grueling part: Downsizing. If you decide that Pod living is for you, it’s time to get that dumpster. And frankly, if you think you should be downsizing, then you should be. Yes, it’s hard to let go of the roomful of stuffed animals and Katy Perry posters that your daughter is not planning to decorate her new apartment with. Or, the books you’ve been buying and putting on shelves for the last 40 years, and my, they do take up a lot of space now, don’t they?
This is an area where a Pod can be a surprising help. For one thing, it will focus your thoughts on the space you’ll be moving to, and how much you’ll need to downsize to fit into it. For another, it’s amazing how helpful a good friend can be in reassuring you that you really can live without that stoneware dinner set or those commemorative coins that were supposed to increase in value but never did. Or, sometimes, they can reassure you that you don’t have to jettison something: “Say, I love to read real books and those will look wonderful in our new common room.”
Downsizing is one of the biggest issues confronting empty nesters moving on to the next phase of their lives. We’ve spent the first two-thirds of our lives accumulating. Accumulating furniture. Accumulating art. Accumulating books and records and CDs and knickknacks and Hummel figurines and cars and boats and cottages by the lake. I know that there can be sentimental value to these things, but the act of accumulation must stop. Remember, to everything, there is a season. A time to cast away stones, and a time to gather stones together. And as we move toward retirement, which may well be as much as one-third of your total lifespan, it’s time to cast away stones; they are weighing you down.
If you have read this far, Pod life may be something to think about. More articles on this topic will follow!
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Neale Godfrey is a New York Times No. 1 bestselling author of 27 books that empower families (and their kids and grandkids) to take charge of their financial lives. Godfrey started her journey with The Chase Manhattan Bank, joining as one of the first female executives, and later became president of The First Women's Bank and founder of The First Children's Bank. Neale pioneered the topic of "kids and money," which took off after her 13 appearances on The Oprah Winfrey Show.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your Wallet
Interest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your Investments
Don't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Beyond Banking: How Credit Unions Serve Their Communities
Credit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth Adviser
From how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
I'm a Financial Adviser: You've Built Your Wealth, Now Make Sure Your Family Keeps It
The Great Wealth Transfer is well underway, yet too many families aren't ready. Here's how to bridge the generation gap that could threaten your legacy.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could Help
Two business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)
The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is Ill
During tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.