Editor’s note: Dave Buck is a longtime columnist Rethinking65. Read more of his articles here.
Dave Buck
Neighborhood gatherings, both planned and spontaneous, are common in my 55-plus community. Residents bring lawn chairs along with their beverages of choice and snacks and set up in someone’s driveway to enjoy a little fellowship.
My wife and I recently grabbed our stuff and joined one of these get-togethers. It was eye-opening. Of those assembled, we were the only ones closer to 55 than 75. We still work. We’re soon to be grandparents, but many others had multiple grandchildren, some in their teenage years. The conversations ranged from local to global.
The Smiths are selling their place in Building 7. The new people are not picking up after their dog. High inflation is producing murderous grocery bills. The homeowners’ association’s plan to fix the erosion behind Building 13 is behind schedule. The war in Ukraine. Current personal medical issues and challenges. The cost of healthcare. The death of a relative.
Please, don’t get me wrong. I have great neighbors and really enjoy where I live. But everyone is retired, so no one asks, “What do you do for a living?” or “How’s the business coming?” Work is not a part of their living equation. My wife and I realized we needed to adapt to our audience better and be ready to engage in meaningful conversations that relate to their station in life.
For a financial professional, having a retirement lifestyle conversation with a 55-year-old is going to be very different from one with someone turning 75. The view of post-career is different and will evolve. You need to be ready to adapt your approach and discussion for someone retiring at 62 versus someone retiring at 67 or 70.
Just as life experiences impact how clients think about and manage their money, these same experiences profoundly influence their vision of retirement. By exploring the origins of these perspectives, advisors can provide more holistic guidance, addressing both financial and non-financial aspects of retirement planning.
Non-financial factors that shape your client’s views on retirement can include family history, media and advertisement portrayals, personal interactions with retirees, career satisfaction and health concerns.
All in the Family
Family history plays a crucial role in shaping an individual’s expectations, fears and overall approach to retirement. The retirement experiences of parents, grandparents and other close relatives often serve as a primary reference point, whether positive or negative. Determine what influence parents and relatives might have on your client’s notion of post-career life.
Everyone gathered in my neighbor’s driveway had either taken care of an aging parent or were in the process of helping with care (including my wife and me). It caused many to adjust their strategies and be more mindful of the choices that will impact their children. As a financial professional, get to know the family lifestyle history to help with the current financial strategy.
Media Representations
Media plays a significant role in shaping societal views on various aspects of life, including retirement. The depictions of retirement in movies, TV shows and advertisements often fall into two extreme categories: overly idealized or excessively negative. These portrayals can significantly impact how people envision their own retirement, sometimes creating unrealistic expectations or unnecessary fears.
If you’re thinking that those who live around me seem to fit a typical retirement stereotype, that’s fair. However, each has come to a level of satisfaction in their current stage in life. They may have fought against the stereotype in the beginning, but now are comfortable in their own skin. You can assure your clients that they can create their own representation.
Through the Eyes of Others
Personal experiences with other retirees can have a profound impact on how individuals view retirement. These interactions, whether positive or negative, often serve as real-world examples that people use to form their own expectations and fears about life after work.
I found this attitude played out a lot in our discussions with neighbors. I regularly heard statements like, “I have been thinking about trying [insert activity]. Tell me about it.” The group shared and compared their experiences to introduce new opportunities. Challenge clients to look for those they can emulate and those they should discount to create their unique approach.
The Importance of Career
The relationship between career satisfaction and retirement outlook is a crucial factor that often shapes an individual’s view of their post-work life. This connection can manifest in various ways through identity concerns, lack of purpose, deterioration of skills, reduced social engagement and uncertainty about what to do.
One of the neighbors just retired at 67. His last job was as a structural engineer, helping build nuclear reactors in the Middle East. His retirement decision took years, and his wife was patient as he worked through the process. While you are not a career counselor, you should be discussing the importance of career with your clients, regardless of the state of the portfolio.
Fitness Anxieties
Health concerns play a significant role in shaping retirement expectations and plans. Personal health issues or family medical history can profoundly impact how clients envision their retirement years. As we age, more time and money will be spent on maintaining our quality of life as it declines.
The most intense conversations in the driveway were about personal well-being. One man spoke about how his wife is suffering with back issues. She was unable to make it to the party, and you could clearly see the worry in his eyes. Delaying retirement because of health does not solve the issues. Your role as an advisor might be to challenge clients to retire so they can focus more on personal care.
Understanding where clients’ views of retirement come from is a powerful tool for financial advisors. By exploring the personal experiences and individual beliefs that shape these perspectives, advisors can offer more nuanced and effective guidance. Through observations and questions and providing non-financial solutions to common concerns, advisors can help clients develop a clearer, more positive vision of their post-career lives.
Ultimately, this deeper understanding allows advisors to align financial strategies with clients’ true retirement aspirations. In an era where retirement is being redefined, this comprehensive approach is not just beneficial — ’it’s essential for advisors who want to provide truly valuable service to their clients.
I’ll be back out there with my neighbors at the next get-together, better equipped to be more involved in the discussions.
David Buck is the author of the book “The Time-Optimized Life,” owner of Kairos Management Solutions, LLC, and founder of the Infinity Lifestyle Design program. As a certified professional retirement coach (CPRC), David works with financial services providers helping their clients create a post-career lifestyle strategy. To learn more, contact him at dave@kmstime.com or visit Infinity Lifestyle Design.
