For decades, the retirement industry has focused almost exclusively on one core question: Do you have enough money to stop working?
From investment strategies and Social Security optimization to 401(k) balances and withdrawal rates, the financial planning world has built a powerful machine to answer that question.
But what if financial security isn't the biggest challenge retirees face?
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What if, instead, the real retirement crisis is emotional, psychological and social?
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A plan for living
Take Jim, for example. He retired at age 65 with a generous pension, a well-diversified portfolio and no debt. From any financial adviser's perspective, he was a model retiree.
But just six months later, his wife, Maddie, became concerned, explaining, "He's not himself. He's drifting. He doesn't get up at the same time anymore. He wanders around the house. He doesn't even seem happy when we travel."
Jim had the money. What he lacked was a plan for living.
For retirees, this pattern emerges again and again. People spend decades preparing for the financial aspects of retirement, but very little time considering who they'll be when their job title disappears.
They haven't thought about what will give their days meaning, how they'll stay connected or how they'll maintain a sense of identity.
Today's retirement expectations aren't a reflection of human nature
We misunderstand retirement because we've been sold a narrow version of it. The conventional model, which tells us to stop working at a fixed age and focus solely on leisure, is a relatively recent development. It's a construct of industrial economies and social policies, not a reflection of human nature.
For most of history, people didn't retire — they shifted. They moved from physically demanding roles to those of mentor, guide and caretaker. They remained embedded in their communities, and their value evolved with age.
Today, many retirees find themselves isolated. The structure, routine and social interaction that came with a job vanish overnight. Without a lifestyle plan to replace them, the result is often a slow erosion of purpose, health and joy.
It's like going off to college for the first time
Let's consider a parallel. Imagine 18-year-olds heading to college for the first time — no more curfews, no chores, no one telling them what to do. "Now I can finally do whatever I want!" they exclaim.
For the first few weeks, that freedom is intoxicating. However, the lack of structure soon catches up: Classes are missed; assignments get overlooked; sleep and diet suffer. They're free, but they're also overwhelmed.
That same experience unfolds in retirement. Freedom without intention becomes drift.
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This brings us to two essential, but disparate, concepts: financial planning and lifestyle planning.
Financial planning is about managing assets so you don't outlive your money. It includes budgeting, investing and tax strategy. It's critical, but it's incomplete, because no matter how solid your financial plan is, it won't tell you when to get up in the morning or why you're even getting up.
Who am I?
Lifestyle planning, on the other hand, is about designing a life of purpose, structure and connection. It asks such questions as:
- Who am I, now that I'm no longer working?
- What brings me joy?
- How do I stay engaged — mentally, physically, socially?
- What kind of legacy do I want to build?
The research is clear: Purpose matters. In a longitudinal study by researchers Patrick Hill and Nicholas Turiano, older adults with a clear sense of purpose lived significantly longer, even when controlling for age, wealth and health status.
Similarly, research from Julianne Holt-Lunstad et al. found that social isolation increases mortality risk by up to 30%.
More recent findings suggest loneliness might be a greater health risk than obesity or smoking.
Fill up that calendar
Yet, many retirees find themselves without meaningful routines or relationships after leaving the workforce. They wake up unsure of what to do. Their calendars are empty. Over time, their confidence, motivation and health begin to decline.
That's why lifestyle planning must include a strategy for maintaining physical and mental health. You don't need to train for marathons, but you do need to move daily, stay curious, learn new skills and engage in activities that stretch your mind and body in healthy ways.
Retirement, done right, isn't an ending, it's a reinvention. It's the chapter in which you finally get to integrate your experience, wisdom and values into something more personal and fulfilling. It's not a lesser version of your life, but a richer one.
If you are approaching retirement, or are already there, ask yourself:
- Are you planning for the money and the meaning?
- Have you considered your new identity, your routine and your relationships?
- Are you designing your lifestyle with the same care you gave your investment portfolio?
Your encore years are too important to leave to chance. They can be your most vibrant and purposeful chapter — if you plan for them.
Richard Himmer is the author of Your Encore Years: The Psychology of Retirement and host of the podcast How Not to Retire. Learn more at hownottoretire.com.
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