Recipe for a Successful Retirement:

Admittedly, many people feel intimidated by the prospects of retirement, even when their finances are on track. Since our firm specializes in retirement planning, we work with many clients who have actually transitioned into retirement.

I’ve had the pleasure of working with Rick and Ilsa for over a decade. As I’ve gotten to know them more personally, I realized there was something about their personality that makes them predisposed to enjoy their golden years.

I thought it would be helpful for readers to hear Rick and Ilsa’s story as it can help you with your own planning and understanding of what it takes to actually be happy in retirement.

What follows is an unedited version of their thoughts on some of the top questions faced by people who are thinking about, transitioning into, or even already in retirement.

1.) One of the top non-financial questions people like to ask is "How will I spend my time in retirement?" Have you thought about this question, and if so, what steps did you take?

Ilsa. I did not know how I would spend my time, but over the year prior to my intended retirement date, I made a list of things I might like to do. I reviewed it for this exercise and found that I have done about half of the items on my list. Having made the list calmed my anxiety about not knowing what I might do.  

Rick. For me, realizing that friends would be important in retirement, I made sure while working to incorporate them and maintain the relationships in my life. Retirement just allowed me more time to commit to those friendships. I also developed strong hobbies while working that included physical exercise routines that I then could expand upon in retirement.

2.) One of the issues with the idea of retirement is the loss of a sense of purpose. Was this something that concerned you? If so, how did you address it?

Ilsa. Yes, I was concerned with a loss of purpose; I felt my jobs helped define me. As a result, after I retired, I was interested in doing some part time activities consistent with my expertise. I found two such activities. I was surprised at how much demand there is for occasional or part-time professional activities, not to mention volunteer opportunities - whether in your area or something entirely new. My inclination to say “yes,” to too many commitments was an early mistake I made.

Rick. No. It can be confusing to differentiate between loss of purpose or structure and fear of the unknown. My career was fulfilling and engaging which is what I strived for and found, but my career did not define who I was. On the other hand, retirement is like going off to college or getting married; there is excitement but also fear. For me having talked to many retired people, I was excited but not fearful.

3.) I know you’re keeping yourself active and engaged! Were you able to maintain some or even most of the connections you made during your working years?

Ilsa. Working people continue to be busy with their jobs, so while I maintain some of my old friendships from my actively employed years, my primary focus is on connecting with other retirees who have the same free time I have.  

Rick. I have several friends from various jobs that I have maintained, and I continue to do so, because they are friends. Acquaintances and professional colleagues have gone by the wayside. Now that I am retired, and not working, I find it challenging to find common ground with people that I only had a working relationship with.

4.) Were you able to reconnect with old friends or build new connections?

Ilsa. Both. While working, I had to prioritize my time and friendships, but as a retiree I have more time to strengthen ties to friends I have long known while also developing new relationships from the new activities do. 

Rick. Pre-retirement, I think it important to spend time with friends and family you care about, and then, in retirement, you can spend more time with them. I now can be more generous with my time. Reconnecting with acquaintances is not a priority for me. Odd as it may sound, I have little time left to develop new friendships but am open to the possibility.

5.) Do you have any kind of routine that keeps you engaged? There’s nothing wrong with just going with the flow, but I know some people need structure even in their retirement years.

Ilsa. Yes, I have regular activities (including reading the newspaper more thoroughly, exercising more, gardening and bridge games) built into my week but they do not consume all my time. I still have down time and the ability to be spontaneous. The two of us try to spend at least part of one weekday doing something together, but we don’t spend most of our days together. 

Rick. I like quiet days and busy nights. Whether you are an extrovert or introvert makes a significant difference. As an introvert (with extrovert skills), just having time to read the morning newspaper and a few chapters in a book and create a good dinner makes my day. I bicycle with a group twice a week and that structure is enough. Evenings I tend to fill up with activities.

6.) You’ve been living in the Washington D.C. area for a while and decided to stay here. As many know, this is one of the more expensive areas to retire. How did you arrive at this decision? 

Ilsa & Rick. Staying here was not a financial decision for us. Given our freedom to stay or move somewhere else, we chose to stay because of our friends, longstanding activities we are involved in and access to high caliber entertainment, restaurants, and museums. We also take advantage of outdoor activities. Lastly, we are rooted in our local community.

Are you thinking about moving somewhere else in the future? 

Ilsa & Rick. No. We do not have grandchildren as a motivator for moving. Leaving here would mean leaving longstanding friends, not to mention activities unique to the area. As we get older, our desire to be near our children may change. 

Rick. I think there is often the illusion that moving somewhere else will solve the problems where people live. The mid-Atlantic has a mild climate so that did not factor in for us. My parents dreamed of having and did have a second home; I learned just what a headache that is. If I want to get away, VBRO is my ticket.

7.) If you could turn back time 10 or even 20 years, would you do anything differently in terms of planning for your eventual retirement?

Ilsa. Not really: if I could have worked part time or had a job that allowed a transition from full-time employment, I would have preferred that, but that was not an option. I worked until I stopped enjoying it 100%, a privilege I had for some 45+ years. Even though I’m older, I continued working for about 2.5 years after my husband retired.

Rick. No. I wanted to retire early, and I did. To carry out this goal, I needed both sound financial advice but also a firm grasp of the income I would need in retirement. Income (and taxes) change in retirement, with travel being an added, expected expense for the first ten years or so but then lifestyle transitioning to a different more domestic lifestyle later. I used our average yearly expenditures as a guidepost to income with income and tax education provided by Alex (since our taxes went way down). Our goal was to duplicate that income in retirement allowing for side savings for weddings, cars, and the unexpected.

Ilsa & Rick. A focus for us was on not being financially anxious in retirement.

8.) What advice can you give to those who are just starting to think about retirement or are perhaps a few years away from it?

Ilsa & Rick. Talk to people 10, or even 20, years older than you both to obtain ideas and to set expectations. Think about why you want to retire and what you will do in retirement. Consider your first year of retirement as a “gap year” and then reassess how you want to spend your time and maybe realign your activities.

Rick. Work on overcoming your fear, if you have it, of all that time you will have. Many friends had to overcome their fear that retirement was this huge expanse of time without purpose or structure. We found that not to be the case. With friends who were “all work and no play,” they lacked the friends and activities that make retirement such a joy. As Ilsa’s brother said, “I have never met someone in retirement who said, ‘My only regret is that I did not work longer.’”