Crossing the Bridge into Retirement

    It's fairly common for discussions of retirement planning to focus solely on the financial aspects of securing a comfortable retirement. But, few individuals may take the time to consider the nonfinancial issues of retirement. However, when retirees report being dissatisfied with their retirement, the disappointment is often focused on lifestyle changes and diminishing self-esteem created by a lack of direction and a loss of feeling productive.

    One possible solution for dealing with these realities is to slowly phase into retirement. Many individuals who are about to retire enjoy the idea of continuing in some form of work, either consulting, job-sharing, acting as a mentor, or providing back-up management. Mentoring, in particular, enables an experienced professional, executive, or business owner to transfer his or her lifetime of learning and experience to a younger "up-and-coming" employee. Phased-in retirement provides an "anchor," and will give you the opportunity to explore other activities while maintaining a meaningful role.

    From a psychological standpoint, an individual may find that separation from his or her job, profession, or business is more emotional than they ever expected. Experience suggests that it might take from two to five years for hard-working ex-business owners and executives to "decompress" from the heavy personal investment they had in their work activities.

    Perspective is really the key to enjoying one's later years. While "retirement" implies the end of your working life, a more positive viewpoint will make retirement the beginning of a new phase of life, a phase in which you can do all the things you never seemed to find the time for while you were working. Volunteer work can enhance your sense of making a contribution, and taking courses in areas of interest can challenge your intellectual curiosity.

    During retirement, with more time available for contemplation, it is both appropriate and wise to look carefully at how you have been living, and to determine the importance of your various activities. Depending on individual circumstances, you may need to reorder your priorities. You may find that you just don't need to be doing some of the things that seemed so important when you were working.

    If you view retirement as your opportunity for exploration and new challenges, you can make this transition an exciting and enjoyable process. Your horizons are limited only by the bounds of your imagination. You've earned this opportunity—enjoy the journey!

How Much Can You Expect to Receive from Social Security?

   There may be no denying the fact that you will be responsible for making up the difference between what Social Security will provide and what you will need when it comes to retirement income.

   To gain a better understanding of the amount of Social Security benefits you can expect, call the Social Security Administration (SSA) at 1-800-772-1213 and ask for Form SSA-7004, the Personal Earnings and Benefit Estimate Statement.

   When you receive the form, fill it out and return it to the SSA. Shortly thereafter, you will receive a record of the earnings credited to your Social Security "account" over your entire employment history. You will also receive a projection of your retirement benefit, based on what you've contributed so far and your future anticipated contributions until retirement.

   Once you know what you can expect to receive, you can then begin planning for closing the gap.

Surviving the Loss of a Spouse

    One of the most difficult experiences in a person's life is the loss of a spouse. In addition to feeling the pain from the loss of your loved one, you may also feel the pain associated with needing to make many important financial decisions. In order to feel secure, you need to know that your personal finances will still run smoothly. Many serious decisions will need to be made and they may have a lasting impact on your financial future.

    There is an unpredictable aspect of "sudden loss" in that you never know how you will react to events until they actually occur. While no one can ever be completely prepared to deal with personal trauma compounded by legal and financial concerns, there are steps you can take to help you navigate through this difficult period.

    The key is to find a way to help provide structure in your life at a time when important supports may be disintegrating.

It Happened. . .What Do I Do?

    When the initial shockwaves hit, there are matters that will require immediate attention: notification of family and friends; funeral arrangements; and contacting an attorney to review the will and handle the legal aspects of your spouse's estate. Let your family, closest friends, and most trusted advisors help you with some of these details and short-term decisions, but proceed with caution regarding major financial decisions such as whether to: sell your home; borrow or lend money; invest; make major purchases; and make work/career changes.

    During this period, you will most likely face competing demands on your financial resources. If your spouse was the primary breadwinner, it may take some time to assess your financial situation. During the first few months, pay bills that need to be paid, but spend cautiously, paying attention to cash flow and liquidity.

Rebuilding After
the Shockwaves

    Certain timetables (e.g., timely filing of tax returns) must be considered, and much of the financial recovery process should be orchestrated to match your emotional recovery. Some of the important aspects that will have to be addressed eventually may include: assessing the needs of dependent children; making housing decisions; determining your income needs; making decisions about insurance settlements; reevaluating insurance needs; and managing money on your own.

    Many of these decisions may flow naturally from an appraisal of your need (and/or desire) to participate in the workforce. Will you want to work? Will economic necessity dictate that you must work? If you are currently employed, will you stay in the same position? If you have not worked for some years, how well will your skills fit the job market? Will you need to acquire more education or enhance your technical skills?

    While professional counsel will be helpful, allow yourself to take things slowly. Your goal should be to develop a sense of command and control concerning your financial future. Align yourself with financial professionals who will have the patience to work with you at your pace—professionals who will help you gain the knowledge and confidence necessary to go it alone.

    Obviously, the earlier you begin to educate yourself concerning financial matters, the better prepared you will be to withstand the impact of facing sudden loss. The quality of your life may depend on your financial skills and your willingness to take responsibility for managing your own financial affairs.