Submitted by: Autumn Nessler, Principal, An Intentional Life, LLC. www.designretirement.org
There are 5 Reasons You Need to Create a Non-Financial Retirement Plan.
If you’re like most women, you’re probably wondering, “a Non-Financial Retirement Plan? What the heck is that?” Simply put, whereas a Financial Retirement Plan answers the question “How much do I need for Retirement?”, a Non-Financial Retirement Plan answers the question “What do I need it for?” But do you really need one? Here are questions to ask yourself.
1. Do I have a plan for the 57,000+ hours I’ll spend in retirement?
Fact: Women will spend, on average, 20 to 30 years in retirement. 30 years equals 57,600 unplanned hours! Would you flunk “Retirement Readiness 101”? quizTake this to find out.
2. I know “How Much I Need,” for Retirement but do I know “What I Need The Money For? ”
Fact: A Non-Financial Retirement Plan will look at your retirement lifestyle. For example; will you still need/want to work, where will you live, what will you do with your time, etc.
3. Who will be impacted by my Retirement? Make a list; Spouse/Partner, Parents, Children, etc. Are they prepared?
Fact: The number of people divorcing after 50 has doubled since 1990. There’s even a term for it: Gray Divorce. Will your relationship survive your Retirement?
4. Do I have a plan for replacing the 5 Benefits that work currently gives me?
Fact: Your work life has given you a lot. How will you replace these 5 primary work benefits: financial compensation, time management, sense of purpose, status, and socialization?
5. Am I prepared for the emotional impact of Retirement?
Fact: Retirement increases your risk of depression by 40%.
So…You may have figured out “how much” you might need when you retire. But aren’t you pulling a number out of the air if you haven’t thought about “how” you want to live in retirement? By creating a Non-Financial Retirement Plan, you can then pinpoint “how much” you’ll need to support your lifestyle.