Don't Fear Retirement - The Water's Great, by Scott Stolz, CFP, RICP (week 49)

 

I’ve commented in previous blog posts that roughly one out of every three retirees report that they are not happier in retirement.  This statistic comes from a 2024 MassMutual study (2024_massmutual_retirement_happiness_study.pdf).  To be fair, that does not mean that all of those people are less happy in retirement.  In fact, the majority of them report that they are just as happy in retirement as they were prior to retirement.  The study found that only 8% of retirees were less happy.  But here’s the thing, I’ve yet to meet any of those people.  Over the last several years, a lot of my contemporaries have retired.  As I approached my own retirement, I would ask all of these people how they like it.  I’ve continued to ask that question since I retired.  At a recent retirement party for a very dear former colleague, I chatted with many that had recently retired.  I asked all of them how they are finding retirement.  I know this haphazard approach is hardly scientific, but I’ve yet to have anyone tell me anything other than how much happier they are.  Perhaps some of them are lying to either themselves or to me, but I’ve yet to sense that.  Every one of them smiled at the question before answering it.

As for me, I’m solidly in the camp of the two-thirds that are happier in retirement.  There is something very freeing about not having your day dictated by a calendar.  And don’t get me started on the joy of not setting an alarm each morning.  My wife and I are working on a project together (I have to do something), but since it’s something I chose to do, not something I was given to do, it's far more enjoyable.  That makes a big difference.  In short, what I enjoy most is the extra freedom and flexibility that you gain in retirement.

So, who are those 8% that are less happy?  Since I’ve yet to meet one, I really don’t know, If you are one of the 8%, or you know someone that is, I’d love to hear from you.  In the interim, I’ll submit small business owners as my most likely candidates.   Anytime you’ve nurtured something for a long time and watched it grow into a thriving enterprise, it’s difficult to give it up.  Perhaps that’s why less than 1 out of every 3 small business owners have a formal succession plan.  Many really just don’t want to let go.

This week’s message is for those that are nervous about how they will react to retirement.  I certainly understand your concerns.  It is a big change.  Work has likely been a big part of your identity.  You’re likely nervous about who you will be, what you will do and who you will spend time with.  If this sounds like you, I hope you take some comfort in the fact that most of those that have already entered this stage of life are happier than they’ve ever been.  So, feel free to dive in.  The water is nice and refreshing.