We describe retirement contentment as being comfortable with your lot in this phase of your life. Being satisfied of course, means a different outcome for different people. The common experience however, is that the level of contentment with retirement changes over time. You may see the initial phase of retirement as very satisfying. While still in good health, you can travel, attend hobbies and activities that you enjoy, even spend time with family.
What are some elements that generate retirement contentment?
There can be many reasons for these things to change, including:
- Health and mobility
- Financial distress
- Geographical disruption
- Generational complications
- Aged Care arrangements/ timing.
In Australia, retirement is generally commenced at around age 65, following a working life of around 45 years. Life expectancy is currently said to be in the eighties, with females living a few years longer than males. (There is a lot of ‘averaging’ and ‘generalisation’ in such statements. You may have a different perspective on them, but it is likely to be of similar consequence.)
Much of the latter half of our working lives is spent contemplating how we can prepare for retirement. Many seek independently financed retirement. What does that mean in monetary terms? It is generally accepted that an acceptable budget for retirement living costs will be about 65% of those costs pre-retirement. (Living costs included here are those day-to-day costs of food, clothing, health care, accommodation/property costs, and motor vehicle costs/ fares. Extras like travel, charity, vehicle replacement, white goods etc will all need to be considered over and above the 65%.)
In simple terms, retiring from full-time employment when you earn $100,000 per year, will require a budget of around $65,000. Assuming an average lifespan, this level of costs will need to be funded for at least 20 years. If these numbers play out, you will spend $1,300,000 in retirement. This doesn’t mean that you will need to accumulate that amount by the time you retire. However, you will need to have accumulated enough to meet two goals. The first is to generate sufficient income to minimise capital drawdowns. And the second is to subsidise those retirement living costs from the accumulated capital slowly enough to ‘last the distance’.
Is it any wonder retirees become anxious from time-to-time?
Being alert to impactful changes
Health and mobility
With ageing comes change to our physical wellbeing as well as making us more vulnerable to illness and disease. Any of these can be debilitating, but all of them affect us in one way or another. The consequences may be limited to temporary disruption of our lifestyle, but can also go to extreme disablement. Almost invariably, each of these events will incur health care costs: some may require a relocation to a different area.
These consequences can result from health events of younger generations requiring adjustment to retirees lifestyle in response to the situation.
Financial distress
We have recently published an article to our website, titled ‘Wealth Management mistakes callout’. It deals with a few matters to which timely attendance should minimise the risk of financial distress in retirement.
For many retirees, the greatest financial concern is that they will ‘run out’ of money. This is particularly disturbing for the financially independent who are reluctant to contemplate social welfare as part of their mix. The confusion arises in not knowing how long you will live, nor whether your lifestyle costs may change with circumstances. Consequently, most people try to over-provide for these unknowns.
The effects of inflation on the cost of living add to the emotional roller-coaster experienced by those troubled by these concerns.
Geographical disruption
Geographical disruption coincidental with a health or other event at or during retirement can impact retirement contentment in several ways. The loss of familiarity, networks, and support groups can be quite challenging to retirees who tend to be less resilient.
Such a disruption can be brought on however because of the lack of appropriate facilities in your local community.
Whatever the reason, or the consequences, financial disruption is also part of this issue.
Generational complications
With the best of intentions, things can go awry within our families. Many retirees find themselves becoming carers for grandchildren in families where both parents are fully employed. They can also find themselves in this position if there has been a marital breakdown. Whilst these can be challenging situations, they can also be financially stressful when geographical barriers are involved.
These similar influences arise when a family member becomes disabled through illness or injury.
Aged Care arrangements/ timing
This is the big issue in or at retirement with significant impact on retirement contentment. The Aged Care system is quite complex, involving a wide range of decision-making situations. Some of the big questions are:
- Should we move into a retirement facility
- Should the facility we choose be ‘continuing care’
- What level of care is required
- What can we afford
- When should we move
Over-riding these issues are considerations regarding geographical relocation, sale of the family home, and continuation of lifestyle.
Help and guidance are available
Many of the big decisions in life involve money. Wealth management involves the management of money – and of the financial management of life events. The experienced team of financial advisers at Continuum Financial Planners Pty Ltd are available to help you work through all of the questions that you need to consider. This is particularly the case for the specialised areas of retirement planning, and aged care planning. In these journeys, our Team becomes your team.
Remember that the earlier you start implementing a plan, the easier it is to achieve goals.
To arrange a meeting with one of our planners, phone our office (on 07-34213456) or use this link to directly Book A Meeting.
Some further reading to consider
We have published a number of articles that will help to answer some of the questions you may be asking as you read through this article. Some relevant articles include:
(This article was first published in July 2024. It may be occasionally be updated/ refreshed.)
